On November 14, 2022, the Contentious-Administrative Chamber of the Supreme Court issued judgment 1476/2022, in cassation appeal 1847/2021, in which it analyzes the accrual of Value Added Tax on services provided by bankruptcy administrators.

The question raised was to determine if the accrual of theVAT for the services provided by the bankruptcy administrators occurs at the end of each of the phases of the bankruptcy process or, on the contrary, takes place when the bankruptcy concludes, It is understood then that the bankruptcy administrator provides his or her services continuously and uniformly throughout the bankruptcy proceedings, regardless of their different phases, providing a single service.

The High Court proceeds to examine article 75 of the law of VAT, as regards the provision of services, together with different articles of the Insolvency Law, as regards the individualisation of the different functions attributed to the insolvency administrators in each of the phases of the insolvency proceedings and, lastly, of Royal Decree 1860/2004, of 6 September, which establishes the tariff of rights of insolvency administrators, in order to be able to affirm that it is possible to individualise the different functions attributed to the insolvency administrators in each of the phases of the insolvency proceedings, the time of completion of each phase thereof and the credit of the insolvency administrator that is payable at the end of the common phase.

The answer given by theTS the question is that, the accrual of theVAT for the services provided by the bankruptcy administrators occurs at the end of each of the phases of the bankruptcy process.

This criterion has been reiterated by the Supreme Court in judgment 1501/2022, of November 16, 2022, appeal 2178/2022

Both rulings can be consulted at the following links: Judgment No. 1476/2022 and Judgment No. 1501/2022 .