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V2313-23 9 August 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia jurídica gratuita

Free legal aid and rental exemptions from VAT

A lawyer providing free legal assistance and renting property inquires about VAT applicability and deduction of fees. The DGT confirms that free legal aid is exempt from VAT and property rentals may be exempt depending on use.

The question raised

Question raised: The taxpayer asks whether they must charge Value Added Tax for the services provided as a lawyer, and whether they can deduct the Value Added Tax amounts corresponding to the purchases associated with said activity.

The DGT's ruling

Free legal assistance services provided by lawyers are not subject to VAT as they constitute compensatory payments. The leasing of dwellings for exclusive residential use is subject to but exempt from VAT. By performing only non-subject or exempt operations, the professional cannot deduct the input tax incurred in their activities nor apply the pro rata rule.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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