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V2967-16 ·27 June 2016 ·consulta-vinculante Medium impact
Tax

VAT deduction from corrective invoices for previous years permitted after cessation of activity

A company inquired whether it could claim a VAT refund for previous financial years following the issuance of corrective invoices after ceasing its business activities. The Directorate-General for Taxes (DGT) ruled that the cessation of activity does not automatically remove the status of taxable person for the purpose of deducting tax amounts directly related to the previous activity.

In 6 key points

How it affects those involved

This ruling clarifies that businesses can still exercise their right to VAT deductions through corrective invoices even after they have ceased operations, provided the amounts are directly linked to the prior business activity.

Lifecycle

2016-06-27PublishedPublished 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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