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V1467-20 19 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

VAT taxable base may be reduced if a rent reduction is agreed upon

A commercial premises lessor seeks guidance on applying a 50% rent reduction due to the state of alarm. The DGT clarifies that the taxable base will be adjusted depending on whether the reduction is agreed upon before or after the accrual of the tax liability.

The question raised

Value Added Tax taxable base in the periods in which said reduction in rental income occurs.

The DGT's ruling

If the reduction in income is agreed upon before or simultaneously with the moment it becomes due, it is considered a discount that does not form part of the taxable base. If the reduction is agreed upon after the accrual, the taxable base shall be modified by the corresponding amount in accordance with the provisions of the law. In the latter case, the tax amounts charged must be rectified.

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