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V0270-22 14 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · modificación de la base imponible

VAT taxable base may be modified via credit notes following debt forgiveness agreements for non-payment

A coworking services company enquired whether it could issue credit notes to reduce the taxable base after reaching debt reduction agreements with defaulting clients. The DGT ruled that this scenario constitutes a modification of the taxable base due to a change in price following the transaction.

The question raised

To determine whether the procedure adopted by the taxpayer complies with the Value Added Tax regulations regarding the provisions contained therein concerning the modification of the taxable base. If not, to determine how the taxpayer should proceed.

The DGT's ruling

When a contractual resolution occurs with partial forgiveness of the outstanding debt due to non-payment, a cause for modification of the taxable base arises pursuant to Article 80.Two of the VAT Law. In this instance, the entity may proceed to modify the taxable base in the corresponding portion by issuing a credit note. This rectification must be carried out once there is evidence of the circumstances necessitating its issuance, provided that four years have not elapsed since such circumstances occurred.

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