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V0470-19 1 March 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Obligation to rectify the VAT charged when the requirements for the reverse charge mechanism are met

A company carried out renovation works and charged VAT, but the client stated that the reverse charge mechanism should have applied. The DGT rules that the improper VAT charge must be corrected using credit notes.

The question raised

Whether the taxpayer must rectify the output tax and, if applicable, the date from which the rectification must be made.

The DGT's ruling

If the construction or renovation operations of buildings meet the requirements for the taxpayer's investment, the entrepreneur must issue invoices with said mention. Since the tax has been incorrectly charged, the issuance of corrective invoices is mandatory. This rectification must be carried out as soon as the cause of the incorrect determination of the tax amounts is noticed, provided that four years have not elapsed since the accrual of the operation.

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