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V1907-21 ·18 June 2021 ·consulta-vinculante Medium impact
Tax

Bad debt relief (Art. 80.4) cannot be applied if the debtor is in insolvency proceedings and the accrual predates the court order

A company inquired whether it could choose between reducing its taxable base due to insolvency proceedings or bad debt relief after pursuing legal action against a developer. The DGT clarifies that if insolvency proceedings have been declared, only the procedure under Article 80.3 of the VAT Act applies.

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2021-06-18PublishedPublished 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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