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V0372-19 20 February 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

The refund of uncompensated VAT may be requested within the statute of limitations after the right to offset has expired

A construction company asks whether it can recover a VAT credit balance declared in 2007 that could not be offset. The DGT explains that, although the right to offset expires after four years, the right to a refund persists during the statute of limitations established by the General Tax Law.

The question raised

Question posed: Possibility of obtaining the refund of the aforementioned amount and, where applicable, the procedure for requesting it.

The DGT's ruling

The right to deduct and to offset is optional and expires if not exercised within the timeframes set by the VAT Law. However, if four years pass without being able to offset the excess, the taxable person may request a refund during the statute of limitations set by the General Tax Law. This prevents unjust enrichment of the Administration and ensures the neutrality of the tax.

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