Back to index
V0572-14 5 March 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · derecho a la deducción

VAT deduction on inventory purchases: when it arises and four-year period

The consultant asks when VAT deduction on inventory purchases can be claimed and how this affects their income tax. The DGT clarifies that the right to VAT arises upon receipt of the invoice, and for income tax purposes, the deductible expense is the consumption of inventory, not the purchase itself.

The question raised

1. To determine the moment at which the amounts of input VAT on the purchase of inventory are deductible.

The DGT's ruling

In VAT, the right to deduction arises when the tax amounts accrue and are deemed incurred upon receipt of the invoice or supporting documents, and may be exercised up to four years later. In Personal Income Tax, the net yield is determined by the consumption of inventory and not by acquisitions, with the expense being recorded in the profit and loss account according to the accrual principle.

Free assessment and quote