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V0210-18 ·30 January 2018 ·consulta-vinculante Medium impact
Tax

VAT taxable base may be reduced for bad debts via notary formal demand

A consulting firm asks whether its procedure of issuing a formal demand via registered mail through a notary meets the requirements to reduce the VAT taxable base due to bad debts. The DGT rules that the procedure is valid provided it complies with the requirements set out in the reports of the General Directorate of Registries and Notaries.

In 6 key points

How it affects those involved

Companies can use notary-certified formal demands to justify the reduction of the VAT taxable base when dealing with uncollectible debts, provided the procedure adheres to official notary standards.

Lifecycle

2018-01-30PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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