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V0217-16 21 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · indemnización por clientela

Goodwill compensation for a commercial agent is subject to VAT as consideration for services

A commercial agent inquired whether compensation received for contract termination due to the client base provided is subject to VAT. The DGT ruled that such compensation constitutes consideration for the services rendered that generate benefits for the entrepreneur.

The question raised

Liability for Value Added Tax.

The DGT's ruling

The compensation for clientele regulated in the Agency Contract Law has the nature of consideration or compensation for the provision of services. As it is paid by reason of services that entail benefits for the entrepreneur following the termination of the contract, a taxable event occurs. Therefore, it must form part of the VAT taxable base and the agent must charge the tax on the amount received.

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