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V1638-24 ·5 July 2024 ·consulta-vinculante Medium impact
Tax

Rules for upwardly adjusting the VAT taxable base following the recovery of bad debts

A taxpayer queried whether the VAT taxable base must be increased after recovering debts previously written off as uncollectible. The DGT ruled that this is not required if the debtor is a businessperson or professional, unless there is a judicial withdrawal or a settlement agreement reached following a notary's formal demand.

In 6 key points

How it affects those involved

This ruling clarifies the VAT implications for businesses recovering previously written-off debts, providing certainty that an upward adjustment of the taxable base is generally not required when dealing with professional debtors, unless specific legal settlements occur.

Lifecycle

2024-07-05PublishedPublished 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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