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V0377-18 14 February 2018 · SG de Tributos Criterion in force
IS · aplazamiento

Legal entities cannot defer instalment payments of CIT or VAT without proving they have not collected the relevant amounts

A federation has enquired whether legal entities may apply the debt deferral regime intended for self-employed individuals to Corporate Income Tax (CIT) and VAT. The Directorate General for Taxes (DGT) clarifies that specific prohibitions exist for these taxes regarding legal entities.

The question raised

Deferral of tax debts for VAT and CIT of legal entities.

The DGT's ruling

Legal entities may not request the deferral or installment payment of debts arising from installment payments of Corporate Income Tax. Regarding VAT, deferral is not permitted unless the taxable person duly justifies that the output tax amounts have not been effectively collected. The burden of proof regarding such collection rests with the taxpayer.

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