Doctrine by topic · DGT Observatory

Act of Consumption: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 29 rulings · 2014–2025

Current position

For a transaction to be subject to IVA (Value Added Tax), there must be an act of consumption that represents a provision of services or a delivery of goods for the benefit of the recipient. Indemnities for damages, losses, or penalties for the early termination of contracts do not constitute consideration, as there is no relationship of reciprocal performances. In these cases, the payment is not the consideration for a service, but rather compensation that does not involve the imposition of the tax.

The DGT's position remains constant regarding the distinction between consideration and compensation. The doctrine establishes that tax liability requires an act of consumption or advantage for the payer, differentiating it from indemnities for breach of contract or penalties. Rulings confirm that if the amount does not remunerate an autonomous service, the transaction falls outside the scope of IVA.

Turning points

  1. V1000-14

    Establishes that an agreed withdrawal is an act of consumption if the commitment to adopt a certain conduct represents an advantage for the payer.

  2. V1431-20

    Defines the analysis criterion to distinguish whether an amount remunerates an autonomous provision of services or simply compensates for damages and losses.

Analysis based on 29 of 29 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
V2566-25 18 Dec 2025

Assumption of penalties under telecom contracts exempt from VAT

SG de Impuestos sobre el Consumo
asunción de penalizaciónacto de consumocontraprestaciónprestación de serviciosresolución anticipada LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual
V1473-18 30 May 2018

Damages for inability to use premises are not subject to VAT

SG de Impuestos sobre el Consumo
indemnizacióndaños y perjuicioscontraprestaciónacto de consumoprestación de servicios LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1.a)
Affects CompanyExpat · Non-residentIndividual
V3946-16 20 Sept 2016

Mandatory football club contributions are not subject to VAT

SG de Impuestos sobre el Consumo
contribuciones obligatoriasprestación de serviciostítulo onerosocontraprestaciónacto de consumo LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 8
Affects CompanyExpat · Non-residentIndividual
V3198-16 8 Jul 2016

Late payment charges and compensatory interest are exempt from VAT

SG de Impuestos sobre el Consumo
base imponiblecontraprestaciónintereses de demoranaturaleza indemnizatoriaacto de consumo LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1.a
Affects CompanyExpat · Non-residentIndividual

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