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V1039-20 24 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · rectificación de cuotas

Four-year period to rectify VAT following a swap resolution begins when the judicial ruling becomes final

A query was raised regarding when the period to rectify output VAT begins in a land swap for future development when the developer enters insolvency proceedings. The DGT ruled that the four-year period starts when the judicial resolution annulling the transaction becomes final.

The question raised

Clarification of the binding ruling dated July 26, 2017, inquiry number V2028-17. In particular, the calculation of the period to proceed with the rectification of the output Value Added Tax.

The DGT's ruling

The four-year period to rectify VAT amounts due to a modification of the tax base begins at the moment the judicial resolution annulling the transaction becomes final. The insolvent entity must rectify via a credit note and reimburse the amounts to the party that bore them. The rectification must be carried out by regularizing the situation in the tax return for the corresponding period or in subsequent returns within the following year.

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