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V0347-18 8 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · devengo

VAT accrual for insolvency administration services occurs upon service execution or payment

An insolvency practitioner has requested clarification on when VAT should accrue for their services. The Spanish Tax Agency (DGT) has ruled that accrual occurs when the services are performed or, in the case of advance payments, at the time of collection.

The question raised

Accrual of the aforementioned provision of services.

The DGT's ruling

In the common phase, the accrual occurs when the service is deemed completed according to insolvency regulations. In the composition or liquidation phases, the accrual occurs when the service is deemed completed in accordance with said regulations. In any case, if advance payments exist, the tax accrues at the time of the total or partial collection of the amounts received.

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