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V0920-16 10 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · autoconsumo de servicios

Free 'pro bono' legal services are not subject to VAT if they serve business purposes

A law firm inquired whether its free advisory and training services provided to non-profit entities are subject to VAT. The DGT ruled that, as they aim to promote the firm and attract talent, these services serve business purposes and do not constitute self-consumption.

The question raised

Treatment of the provision of services carried out within the framework of the service program subject to consultation.

The DGT's ruling

Gratuitous provision of services is not subject to tax if performed to serve the company's own purposes. In this case, the pro bono program seeks to improve the firm's public perception and attract professionals, therefore it does not satisfy private needs or purposes unrelated to the activity. As they are related to the development of the professional activity, they fall outside the scope of self-consumption under Article 12.3 of the VAT Law.

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