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V2531-19 ·18 September 2019 ·consulta-vinculante Medium impact
Tax

Contract termination compensation is exempt from VAT, but compensation for goods delivered is subject to it

A taxpayer has enquired whether indemnities paid due to the termination of a commercial lease agreement are subject to VAT. The DGT distinguishes between compensation for damages, which is not subject to VAT, and compensation for the delivery of goods (machinery, furniture, etc.), which is subject to the tax.

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2019-09-18PublishedPublished 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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