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A cooperative sought guidance on how to proceed following the termination of housing construction contracts for which advance payments subject to VAT had already been collected. The Directorate General for Taxes (DGT) ruled that contract termination allows for the modification of the taxable base and the rectification of the VAT charged.
This ruling provides legal certainty for developers and cooperatives regarding the adjustment of VAT when construction contracts are rescinded, allowing for the correction of previously issued invoices.
The tax team reviews your specific situation.
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