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V0941-19 ·29 April 2019 ·consulta-vinculante Medium impact
Tax

VAT must be rectified via credit note and tax return adjustment if a land swap is voided

A real estate developer sought guidance on the VAT treatment following the cancellation of a land swap agreement for future works, where no assets were returned but a cash payment was made. The DGT ruled that, as this constitutes a modification of the taxable base rather than an undue payment, the tax must be rectified through a credit note and regularised in the tax return.

In 6 key points

How it affects those involved

Companies involved in land swaps or complex real estate transactions must ensure that any cancellation or modification of the agreement is correctly reflected through credit notes and tax return adjustments to comply with VAT regulations regarding taxable base modifications.

Lifecycle

2019-04-29PublishedPublished 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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