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V2182-19 ·14 August 2019 ·consulta-vinculante Medium impact
Tax

Agricultural insurance compensation received by a cooperative is not subject to VAT

A cooperative sought clarification on whether VAT should be applied when transferring agricultural damage insurance compensation to its members. The DGT ruled that these amounts are compensations for damages and do not constitute consideration for services.

In 6 key points

How it affects those involved

This ruling clarifies that insurance payouts intended to redress losses are outside the scope of VAT, as they lack the element of consideration required for a taxable supply.

Lifecycle

2019-08-14PublishedPublished 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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