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A homeowners' association inquired whether it could recover its credit through the VAT accrued by a company in insolvency proceedings. The Directorate General for Taxes (DGT) ruled that the taxpayer is obliged to include the accrued amount in its tax return and make the corresponding payment.
This ruling clarifies the mandatory nature of VAT reporting and payment, ensuring that accrued VAT cannot be withheld or bypassed even when the taxpayer is undergoing insolvency proceedings.
The tax team reviews your specific situation.
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