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V2110-22 ·5 October 2022 ·consulta-vinculante Medium impact
Tax

Payment of legal costs compensation is not subject to VAT

A lawyer inquired whether they are liable for the VAT differential between the legal costs compensation received by their client and the VAT charged on their professional fees. The Directorate General of Taxes (DGT) ruled that compensation for legal costs does not constitute a transaction subject to VAT.

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2022-10-05PublishedPublished 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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