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V1255-14 8 May 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Taxable base cannot be reduced for non-payment if insolvency proceedings have been declared

The taxpayer inquired about the possibility of recovering VAT on outstanding invoices. The DGT clarified that reducing the taxable base for bad debts is not permissible if an insolvency declaration order has already been issued.

The question raised

Possibility of recovering the Tax on outstanding invoices.

The DGT's ruling

The reduction of the tax base due to bad debts (art. 80.Four) is not possible if a bankruptcy declaration order has been issued, pursuant to art. 80.Five.3 of Law 37/1992. The modification of the tax base is a prerogative of the taxpayer conditioned upon strict compliance with legal requirements and deadlines. A notarial requirement cannot be used to modify the tax base outside the terms of article 80.Four.

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