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V0689-23 22 March 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

Right to deduct input VAT via Article 115 procedure remains valid provided it has not expired

A French company inquired whether it could deduct or claim a refund for input VAT incurred on office leases in periods prior to a regulatory change. The Directorate General for Taxes (DGT) ruled that the company may exercise its right to deduction through the general procedure under Article 115, provided the right has not expired.

The question raised

Question raised: Clarification of the binding ruling of February 14, 2023, inquiry V0242-23, regarding whether the taxpayer has the right to deduct and request the refund/offset of input tax incurred from the leasing of the property in fiscal years prior to the regulatory change introduced by Law 31/2022, of December 23, via the procedure of Article 115 of the Tax Act, insofar as the right to deduction has not prescribed.

The DGT's ruling

To ensure the neutrality of the tax, the right to deduct input tax must be guaranteed regardless of the inadequacy of previous procedures. The taxpayer may exercise its right to deduction through the procedure of Article 115 of Law 37/1992, provided that the four year limitation period from the time of accrual has not elapsed. The exercise of this right is subject to compliance with the requirements of the Law and the correct accounting of the tax amounts.

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