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V1136-14 22 April 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Post-accrual payment deferrals do not alter deadlines for reducing taxable base due to bad debts

A construction company sought clarification on whether, after agreeing to a payment deferral in 2010 for 2008 invoices, the six-month period to reduce the taxable base due to non-payment began from the date of the first unpaid invoice. The DGT ruled that a deferral agreed after the accrual does not change the nature of the transaction or the statutory deadlines.

The question raised

Question raised: Taking into account that on June 15, 2010, a deferral was granted for the payment of the due invoices, specifically through a schedule of 6 monthly payments, whether the date on which the first of the scheduled payments resulted in non-payment can be considered the date on which the calculation of the 6 month period referred to in art. 80.Four.A).1ª of the Tax Law must begin and, therefore, whether the requirements for the modification of the tax base are met.

The DGT's ruling

The granting of a deferral to the debtor subsequent to the accrual of the transactions does not qualify the credit as an installment transaction nor does it modify the time limits for the reduction of the tax base. The calculation of the period to consider a credit as uncollectible must be carried out from the initial accrual of the transactions according to their original classification. Therefore, the modification of the tax base is not appropriate if it is carried out outside the legal time limits in force at each moment.

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