Back to index
V0444-17 20 February 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

VAT may be passed on following changes to the taxable base if the recipient agrees to bear the cost

A City Council inquired whether it could pass on the VAT from a construction certificate after losing a legal dispute regarding urbanisation costs. The Directorate General for Taxes (DGT) indicates that, although the right to pass on VAT expires one year after it accrues, it remains possible to do so via a corrective invoice if the recipient agrees to bear the tax.

The question raised

Question posed: Whether the pass-on of Value Added Tax is appropriate for the amount of the disputed certification transferred to the owners through the corresponding urbanization fees.

The DGT's ruling

In the event of a final judicial ruling that modifies the tax base, the taxable person must proceed with its modification and issue the corresponding corrective invoice. If no invoice was issued at the time of accrual, the right to pass on the tax is lost if more than one year has elapsed. Notwithstanding, it is possible to pass on the VAT in the corrective invoice provided that the recipient accepts bearing such late pass-on.

Email
Contact