Skip to content
Back to index
V0357-18 8 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · devengo

VAT accrual for insolvency practitioners occurs upon completion of service or receipt of advance payments

A query was raised regarding when VAT should accrue for services provided by an insolvency practitioner. The DGT ruled that accrual occurs when the service is completed under insolvency regulations, or at the time of payment if advance payments have been made.

The question raised

Accrual of Value Added Tax.

The DGT's ruling

The accrual of VAT for insolvency practitioner services occurs when the service is deemed completed in accordance with insolvency regulations. However, if advance payments exist, the tax shall accrue at the time of the total or partial collection of the amounts received. The moment at which the judge determines the remuneration is irrelevant for determining the accrual.

Book your free first meeting