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The termination of an agreement for compensation follows the VAT treatment of the underlying services

The termination of an agreement (on agency services) for compensation follows the VAT treatment of the underlying services. If the agreed underlying services qualify as tax exempt agency services in connection with export supplies, the compensation fee for terminating the contract is also VAT exempt (Supreme Administrative Court 14.5.2020, Ro 2020/13/0001).

Source: Leitner & Leitner

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