It is important to properly treat the VAT treatment in the transaction agreement itself by answering these questions: as an illustration, the effect of the non-admission of TAXE on value added to an out-of-court settlement is as follows: in light of the above, sellers who enter out-of-court transactions, especially the seller who receives payment of compensation , recall that it is important to explicitly state in the transaction contract: , what the payment of the transaction is made. , and whether the agreed compensation is exclusively or VAT included if VAT is payable. If the VAT transaction contract is silent, the payment is considered to be included by VAT when it is provided for services provided. As a result, the seller who receives such a payment is responsible for VAT on the amount of compensation equal to the creditor`s tax share, so that the beneficiary falls out of his wallet and ultimately charged for less. VAT is levied on the value of the supply of goods or services by a seller as part of or as part of the promotion of a business carried out by that seller. VAT is therefore not a tax levied on revenue. The value to be put on a delivery is the amount of the «counterpart» of such a delivery. The amount must therefore be obtained for, in response to or for the incentive to deliver goods or services for the amount subject to VAT. There must be a sufficient connection between delivery and payment for payment to be a consideration. It follows that in the case of compensation paid to a seller, it is necessary to check whether the payment is a consideration for the provision of goods or services by that seller. However, the formulation of a transaction agreement, by adding an overall figure paid in one direction to a tally of all receivables, can avoid this issue (since there is no compensation at that time).
Where compensation relates in part to a service and partly to the compensation of a seller for the losses incurred, an appropriate distribution of the payment within the meaning of Article 10, point 22, of the VAT Act is necessary. The portion of the payment related to the losses incurred is not subject to VAT, while the part of the payment received in return for the services provided is collected at VAT. It is therefore desirable that the transaction agreement clearly specify the compensation to be paid for each part of the debt. The VAT treatment of payments made under a transaction agreement is determined according to the amount paid with respect to the amount. As a general rule, compensation for losses or damages incurred is not subject to VAT, as it is not paid for the supply of anything, whereas compensation paid to a seller in return for his right to sue an existing debt is a consideration for a service provision and is subject to VAT.