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V3436-20 27 November 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Rebilling of court fees paid in one's own name must include VAT in the taxable amount

A credit institution enquired whether the court fee paid when filing a lawsuit, which is subsequently billed to a securitisation fund, could be treated as a disbursement (suplido) to avoid VAT application. The DGT ruled that, as the institution is the taxable person for the fee, the payment is made in its own name and not as a disbursement.

The question raised

Consideration of the fee invoiced to the securitization fund as a disbursement, for the purpose of not applying Value Added Tax to it.

The DGT's ruling

For an amount to be considered a disbursement and not be included in the taxable base, it must be paid on behalf of and for the account of the client, under express mandate and for an amount identical to the expense. In this case, the credit institution is the taxable person for the judicial fee, therefore the payment is made in its own name. Consequently, the re-invoicing of said fee must include VAT in the taxable base.

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