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V1403-22 15 June 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

IVA rectification required when passive party investment applies

A company invoiced for earthmoving works with VAT, but the client later notified that passive party investment applied. The DGT states that VAT repayment was due, and rectification is necessary.

The question raised

Whether the taxpayer must rectify the tax amounts charged referred to in the consultation request.

The DGT's ruling

The taxpayer must issue corrective invoices as the tax was charged when the reverse charge mechanism should have been applied. The rectification must be carried out at the time the cause is identified, provided that four years have not elapsed since the accrual. To this end, the taxpayer must use the option to regularize their situation in the corresponding tax return or subsequent ones, being obliged to refund to the recipient the tax amounts charged in excess.

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