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V0069-22 18 January 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · subvención vinculada al precio

Local legal guidance services are subject to VAT and the invoice must be issued to the citizen

An Autonomous Community inquires whether subsidies for local legal guidance services provided by bar associations are subject to VAT. The DGT responds that, as these are not mandatory services nor do they have an indemnification nature, the subsidy constitutes consideration subject to the tax.

The question raised

Question posed Whether said provision of services shall be subject to Value Added Tax and, if so, the recipients thereof to whom the corresponding invoice must be issued.

The DGT's ruling

Local legal guidance services are subject to VAT at the general rate, as the subsidy constitutes the remuneration for the provision. Since these are not mandatory services for professionals nor do they have an indemnification nature, the financial contribution forms part of the taxable base. The recipients of the provision, and therefore those who must receive the invoice with the passed-on tax, are the beneficiary citizens.

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