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A company inquired whether it could reduce its VAT taxable base due to unpaid invoices from a grouping of municipalities, following an agreement to defer payment over 45 months. The DGT ruled that the taxable base cannot be modified outside of legal timeframes and that a deferral agreement reached after the accrual date does not reclassify the transaction as an instalment sale for the purpose of calculating statutory periods.
The tax team reviews your specific situation.
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