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V1870-16 ·27 April 2016 ·consulta-vinculante Medium impact
Tax

Filing for compulsory insolvency proceedings does not constitute a judicial claim to reduce the VAT taxable base

A query was raised regarding whether filing a claim for compulsory insolvency proceedings against a debtor satisfies the requirement of a judicial claim to reduce the VAT taxable base for bad debts. The DGT ruled that it does not, as the objective of such a claim is the declaration of insolvency rather than the recovery of the debt.

In 6 key points

How it affects those involved

Companies cannot use the filing of insolvency proceedings as a substitute for a judicial claim to write off VAT on uncollectible debts.

Lifecycle

2016-04-27PublishedPublished 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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