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A company that has legally succeeded the grantor of a call option has enquired whether it must rectify the VAT following a reduction in the agreed price. The DGT has ruled that, having been subrogated into the rights and obligations, the entity is responsible for issuing the credit note and refunding the difference to the recipient.
This ruling clarifies the VAT obligations of entities that succeed to rights and obligations through legal subrogation, specifically regarding the issuance of credit notes and the refund of VAT when contract terms affecting the price are modified.
The tax team reviews your specific situation.
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