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V1273-17 26 May 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · indemnización por clientela

Goodwill compensation in agency contracts is subject to VAT, unless it is consideration for an exempt financial service

A company sought clarification on whether goodwill compensation received following the termination of an agency contract was subject to VAT. The DGT ruled that this payment constitutes consideration for services rendered that generate benefits for the entrepreneur, and therefore must be taxed.

The question raised

Subjectivity to Value Added Tax of the referred operation.

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 there is a consumption act by the party satisfying it, the amount must form part of the VAT taxable base. This applies provided that the compensation is not the consideration for a financial service that is subject and exempt.

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