Skip to content
Back to index
V2188-23 26 July 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · costas judiciales

Legal service invoices cannot be demanded by the party liable for costs, as they are not the recipient of the service

An inquirer requested the invoice for the opposing party's legal services to justify the payment of costs to their insurance provider. The DGT ruled that the party liable for costs receives compensation rather than being the recipient of the service provision, and therefore has no right to the invoice.

The question raised

Whether the lawyer for the opposing party must provide the consultant with the invoice issued to her client.

The DGT's ruling

The payment of legal costs is compensation that does not constitute a transaction subject to VAT, therefore the issuance of an invoice to the losing party is not appropriate. The lawyer must invoice her services to the winning party, who is the true recipient of the service. The party liable for the payment of costs must pay the amount determined by the judge, including the VAT that taxed the services provided to the winning party, but without this generating a new transaction subject to the tax.

Book your free first meeting