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V0337-23 ·20 February 2023 ·consulta-vinculante Medium impact
Tax

VAT cannot be deducted on expenses related to the collection management of own receivables

An entity involved in the purchase and management of receivables has enquired whether it can deduct VAT on collection expenses. The DGT has ruled that the collection management of own receivables does not constitute a taxable transaction and, therefore, does not entitle the entity to a VAT deduction.

In 6 key points

How it affects those involved

This ruling limits the ability of companies managing their own debt collection to recover VAT on associated costs, as these activities fall outside the scope of VAT.

Lifecycle

2023-02-20PublishedPublished 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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