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A query was raised regarding whether a budget for variable legal service fees includes VAT. The DGT ruled that, unless the recipient is a public entity, if the inclusion of the tax is not expressly agreed upon, the agreed price is understood not to include it.
Question raised: Whether it must be understood that the budget corresponding to variable fees includes or does not include Value Added Tax.
If the recipient is a public entity, it is understood that the economic proposal includes VAT, which must be charged as a separate item. In all other cases, if the parties have not expressly agreed that the agreed price includes the tax, it must be understood that said tax is not included when the taxable person is entitled to charge it in accordance with the law.
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