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V2574-21 ·21 October 2021 ·consulta-vinculante Medium impact
Tax

VAT taxable base may be modified due to contract termination and debt forgiveness following non-payment

An energy supplier has enquired whether it can modify the VAT taxable base when, following a customer's non-payment, it terminates the contract and forgives the debt. The Directorate-General for Taxes (DGT) has ruled that modifying the taxable base is indeed possible.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment for energy companies when dealing with bad debts, confirming that contract termination and debt forgiveness allow for the adjustment of the VAT taxable base.

Lifecycle

2021-10-21PublishedPublished 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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