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V0148-17 24 January 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · permuta

Construction companies must rectify VAT via corrective invoice if housing delivery is replaced by cash

A consultant enters into a barter agreement with a construction company to receive two future properties and a cash payment. Upon ultimately deciding to receive only the cash amount, the consultant seeks guidance on how the VAT from the original transaction should be treated.

The question raised

Issue raised: VAT treatment of the waiver of payment in kind and its substitution by the corresponding pecuniary amount.

The DGT's ruling

Upon the resolution of the exchange and the substitution of the delivery of dwellings with a pecuniary obligation, a modification of the tax base occurs. The construction company must rectify the charged tax amounts resulting from the advance payment by issuing a corrective invoice. Furthermore, the construction company is obliged to refund the amount of the tax amounts initially charged to the party who bore them.

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