Skip to content
Back to index
V2816-20 17 September 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · costas judiciales

Lawyers must charge VAT to clients for legal defence, even if costs are paid by the opposing party

A lawyer inquired whether she must issue VAT invoices to her clients for court costs to be paid by the losing party. The DGT ruled that since the client receives the service, the invoice and VAT must be addressed to them.

The question raised

The taxpayer asks whether they must issue an invoice, including tax, to their clients as a consequence of receiving said costs.

The DGT's ruling

The payment of legal costs by the losing party constitutes compensation that does not involve VAT between the loser and the winner. However, the lawyer must charge VAT to their client, who is the actual recipient of the provision of services. If the invoice amount is modified to adjust to the costs fixed by the judge, a corrective invoice must be issued.

Book your free first meeting