Skip to content
Back to index
V2033-17 26 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia jurídica gratuita

Legal aid services are exempt from VAT as compensation is considered indemnification

A lawyer inquired whether their legal aid services are subject to VAT. The DGT ruled that, following the reform of Law 1/1996, these services are not subject to the tax because the amounts received are compensatory in nature rather than being a consideration for services.

The question raised

Subjectivity of the operations subject to consultation to Value Added Tax.

The DGT's ruling

Since January 1, 2017, services provided by lawyers and court representatives within the framework of Law 1/1996 are not subject to VAT. This is due to the fact that the new regulation establishes that the provision is mandatory and that the amounts received by the professionals are compensatory in nature. As these amounts do not constitute consideration for the provision of services, the requirement of onerousness for tax liability is not met.

Book your free first meeting