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V1166-22 26 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · base imponible

VAT taxable base may be reduced for non-payments if claim deadlines and requirements are met

An office owner has enquired about the treatment of unpaid rent for VAT and Personal Income Tax (IRPF) purposes. The DGT explains that for VAT, the taxable base may be reduced under specific conditions, while for IRPF, non-payments may be deducted as doubtful debts after certain periods.

The question raised

Requests information regarding the procedure for modifying the taxable base of unpaid invoices corresponding to the provision of leasing services for Value Added Tax purposes. Regarding Personal Income Tax, requests information on the consequences of non-payment and how they affect the withholding that the lessee was required to perform.

The DGT's ruling

For VAT, the taxable base may be reduced proportionally if the credit becomes uncollectible after one year from the accrual date, is recorded in the books, the recipient is a business owner or the base exceeds 300 euros, and judicial or notarial collection efforts have been initiated. For Personal Income Tax (IRPF), income from real estate capital must be imputed in full even if not collected, although doubtful debts may be deducted as an expense after the regulatory period has elapsed. Regarding IRPF withholdings, the obligation to withhold arises when the income is satisfied; therefore, if there is no payment, there is no withholding.

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