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V2419-20 ·14 July 2020 ·consulta-vinculante Medium impact
Tax

Indemnification for contract suspension may be subject to VAT if covering reactivation costs

A public company asks whether indemnification for temporary contract suspension in a consultancy agreement is subject to VAT. The DGT determines that compensation for damages and losses is exempt from VAT, but compensation for reactivation costs is subject to VAT.

In 6 key points

Lifecycle

2020-07-14PublishedPublished 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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