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V0593-17 8 March 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

VAT on unpaid invoices cannot be rectified if legal deadlines for modifying the taxable base have expired

A company inquired whether it could claim a VAT refund for invoices from customers whose debts were extinguished due to insolvency proceedings. The DGT ruled that this is not possible because the legal deadlines for modifying the taxable base and rectifying tax amounts have already passed.

The question raised

Possibility of requesting the Tax Agency to refund those output tax amounts, charged, paid, and uncollected.

The DGT's ruling

The modification of the tax base due to insolvency proceedings or uncollectible debts must be carried out within the specific time limits established in Article 80 of Law 37/1992. If the time limits for the modification of the tax base and the subsequent rectification of the tax liabilities have already expired, such modification is not permissible. In this case, as the legal time limits have expired, the taxpayer cannot rectify the tax liabilities of the unpaid credits.

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