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V0146-14 23 January 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · destinatario jurídico

VAT on leasing cannot be deducted if invoices are issued to a previous entity, except in cases of rectification or merger

A company that acquired the rights and obligations of another entity sought clarification on whether it could deduct VAT from a vehicle lease where the invoices were issued in the name of the dissolved company. The DGT ruled that deduction is not possible if the invoices do not contain the correct details of the legal recipient, unless they are rectified or result from a merger by absorption.

The question raised

Deduction of Value Added Tax installments corresponding to the financial leasing of the vehicle. Form 347.

The DGT's ruling

The legal recipient of a transaction is the party holding the position of creditor in the legal relationship, regardless of who the economic beneficiary is. If the ownership of the leasing contract has not been modified, invoices issued in the name of the previous entity do not allow for the deduction of VAT. To exercise this right, one must request the rectification of the invoices or prove that the acquisition was carried out through a merger by absorption.

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