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V0385-21 25 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Invoice recognition period depends on whether accrual or cash basis accounting is used

A taxpayer inquired whether an invoice issued in December 2020 and paid in January 2021 should be recorded in the year of issuance or the year of payment. The DGT ruled that the period depends on the temporal recognition method chosen by the taxpayer for their economic activity.

The question raised

Tax period for the recognition of the aforementioned invoice.

The DGT's ruling

If the accrual basis is applied, income is recognized on the date of delivery of goods or provision of services and the issuance of the invoice. If the cash basis has been chosen, the invoice is recognized in the period in which the collection occurs. Therefore, the invoice in question shall be recognized in 2020 or 2021 depending on the criterion used.

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