Skip to content
V3162-18 ·12 December 2018 ·consulta-vinculante Medium impact
Tax

Damages and losses are not subject to VAT if they do not constitute consideration

A company has enquired whether judicial compensation for property damage caused by an earthquake must include VAT. The DGT has ruled that if the amount compensates for damages and losses, it does not constitute consideration for services and therefore VAT should not be charged.

In 6 key points

Lifecycle

2018-12-12PublishedPublished 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