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V0618-24 9 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · rectificación de cuotas

VAT taxable base and output tax must be rectified if a court ruling alters fee amounts

A professional sought clarification on the VAT and IRPF implications of returning insolvency practitioner fees following a judicial challenge. The DGT ruled that for VAT, both the taxable base and the tax amounts must be rectified; however, for IRPF under the simplified direct estimation regime, the litigation outcome does not affect income already accounted for.

The question raised

In relation to Value Added Tax, the taxpayer questions the treatment corresponding to fees previously collected unduly and their effects on said Tax, likewise inquiring about the possible effects in relation to Personal Income Tax.

The DGT's ruling

Regarding VAT, if a final judicial ruling alters the price of the service, the taxable base must be modified and the tax amount rectified via a credit note within a period of four years. For Personal Income Tax, under the simplified direct estimation method, it is not permissible to deduct a specific provision for the litigation, as a global percentage is applied to the net income. Therefore, the resolution of the litigation has no impact on the professional income computed at the time.

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