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V1117-16 21 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · devengo

VAT must continue to accrue on leases even if the premises are closed and payment is deferred

The inquirer asks whether VAT must be accrued on the lease of a premises that has been judicially closed and for which payment has been agreed on a deferred basis. The DGT rules that accrual continues unless the contractual relationship is formally cancelled or modified.

The question raised

Accrual of the Tax installments that would have corresponded to the months in which the premises remained closed.

The DGT's ruling

VAT accrues in leases when the agreed portion of the price becomes due. If the contractual relationship is not formally cancelled or modified due to the closure of the premises, the tax shall continue to accrue according to the agreed payment terms. In the event of non-payment, the taxable base may only be reduced if the requirements for uncollectibility are met, but as a collection agreement exists, the base should subsequently be adjusted upwards.

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