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A commercial landlord who terminates a lease after years of non-payment can reduce the VAT taxable base under article 80.2 of Law 37/1992, considering the debt as definitively extinguished. This differs from uncollectible debt (art. 80.4), applying instead the principle of termination or cancellation according to EU case law. The correction of previously charged amounts must be completed within four years of the definitive debt extinction, with an additional year to settle tax matters if the adjustment is downward.
The tax team reviews your specific situation.
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