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V5201-16 30 November 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · devengo

Funds received by a court agent require the issuance of an invoice for VAT accrued

A query was raised regarding whether a court agent (procuradora) must issue an invoice for funds received in advance for judicial proceedings. The Directorate-General for Taxes (DGT) ruled that these collections are considered advance payments that trigger the tax and must be documented via an invoice.

The question raised

Obligation of the legal representative to issue an invoice for such advances of funds.

The DGT's ruling

Collections for advances of funds prior to the operation are considered advance payments, which triggers the accrual of VAT on the amounts received. The passing on of the tax must be carried out by means of an invoice that complies with the regulatory requirements. It is not possible to use simplified invoices if the amount exceeds 400 euros, as legal representation services are not included in the extended limit of 3,000 euros.

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