Skip to content
Back to index
V3085-19 4 November 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · indemnización por clientela

Goodwill compensation for commercial agents is subject to VAT and Income Tax

The heirs of a deceased commercial agent have requested a ruling on the taxation of the goodwill compensation received. The DGT has determined that this compensation constitutes consideration for services rendered, and therefore must be subject to VAT and Income Tax.

The question raised

VAT and Personal Income Tax (IRPF) taxation of the compensation for clientele.

The DGT's ruling

The compensation for clientele under Article 28 of the Agency Contract Law constitutes consideration for services rendered that result in benefits for the entrepreneur, and therefore must be included in the VAT taxable base. For Personal Income Tax (IRPF) purposes, it is considered income from professional activity that must be included in the deceased's final tax period. The 30% reduction for irregular income is not applicable. The heirs, as successors, must file supplementary tax returns and issue the corresponding invoices.

Book your free first meeting