Skip to content
V2566-25 ·18 December 2025 ·consulta-vinculante Medium impact
Tax

Assumption of penalties under telecom contracts exempt from VAT

A telecoms distributor inquired whether payments of penalties to new customers for breaching prior contracts were subject to VAT. The DGT replied that they are not, as there is no act of consumption or consideration for a service.

In 6 key points

Lifecycle

2025-12-18PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact