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V0245-14 31 January 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · renuncia a la exención

Possibility of claiming VAT refunds following an improper waiver of exemption

A company enquired whether it could recover VAT paid after waiving an exemption on the purchase of estates, upon discovering it did not meet the requirements for such a waiver. The DGT explains that if the waiver was improper, the seller must rectify the tax amounts and the buyer may request a refund of undue payments.

The question raised

Question posed: Possibility of recovering the Value Added Tax paid, where applicable, by the consulting entity as a consequence of the purchase and sale transaction.

The DGT's ruling

If the exemption is waived without complying with the conditions of Article 20.Two of Law 37/1992, the taxable person for the supply must rectify the unduly charged tax amounts. The acquirer who bore the charge has the right to request the refund of undue payments, provided that it was carried out via invoice, the tax amounts have been paid, and the acquirer was not entitled to the deduction of said amounts. The refund shall be limited to the amount that would not have been deductible in the event of a right to partial deduction.

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