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V0565-20 10 March 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

VAT deduction must be rectified if vehicle acquisition is voided due to seller's lack of ownership

A company purchased vehicles from a seller who was not the actual owner, necessitating the return of the goods or their repurchase from the legitimate owner. The DGT has ruled that the company must rectify the initial deduction and may deduct the new VAT from the purchase from the actual owner, provided all requirements are met.

The question raised

Deductibility of Value Added Tax amounts incurred through the acquisition and reacquisition of vehicles.

The DGT's ruling

If the transaction is rendered void by resolution or commercial usage, the tax base is modified. The company must rectify the deduction initially applied to the vehicles whose sale was rendered void. The tax paid on the new acquisition from the legitimate owner shall be deductible if the requirements of business use and documentary justification are met.

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