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V0486-18 22 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · costas judiciales

Legal costs are not subject to VAT between the winning and losing parties

A lawyer inquired whether VAT should be charged to a client paying legal costs following a successful lawsuit. The Directorate General of Taxes (DGT) ruled that the payment of costs constitutes compensation rather than a provision of services between the parties to the litigation.

The question raised

Cuestión planteada Sujeción al Impuesto sobre el Valor Añadido de los servicios objeto de consulta.

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