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V1706-16 ·19 April 2016 ·consulta-vinculante Medium impact
Tax

VAT taxable base may be reduced for bad debts by notifying the insolvency administration of the debt

A legal professional inquired about the requirements and deadlines for classifying an invoice issued to a company in insolvency proceedings as uncollectible. The Directorate General of Taxes (DGT) ruled that notifying the insolvency administration of the debt for inclusion in the list of creditors is equivalent to a formal judicial claim.

In 6 key points

How it affects those involved

This ruling provides legal certainty for professionals and businesses regarding the VAT deduction mechanism for bad debts when dealing with insolvent debtors, confirming that administrative notification suffices to meet the legal requirements for debt rectification.

Lifecycle

2016-04-19PublishedPublished 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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