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V2106-24 ·27 September 2024 ·consulta-vinculante Medium impact
Tax

Payment of legal costs is not subject to VAT and can be claimed as an expense or loss for Income Tax purposes

A taxpayer inquired whether pro forma invoices for the winning party's legal fees can be used to deduct VAT and if they are deductible for Income Tax. The DGT ruled that the payment of legal costs constitutes compensation not subject to VAT, and that the expense or loss can be substantiated through evidence admissible under the law.

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2024-09-27PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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