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V2523-20 23 July 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia jurídica

Legal aid services for social services users subject to 10% VAT

A lawyer sought clarification on the VAT rate applicable to legal aid services provided to social services users of a local authority association. The Directorate-General for Taxes (DGT) ruled that, as the professional does not constitute a private establishment of a social nature, the services are subject to the reduced rate of 10%.

The question raised

Tax rate of Value Added Tax applicable to the described services.

The DGT's ruling

Legal assistance services provided to users of social services requesting aid due to Covid-19 are subject to VAT. The exemption under Article 20.1.8º does not apply because the lawyer does not hold the status of a private establishment of a social nature. Therefore, the reduced rate of 10% applies pursuant to Article 91.one.2.7º of Law 37/1992. If the legal services are not considered included in a social assistance program, the general rate of 21% shall apply.

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