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V1542-23 5 June 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

No invoice issuance or deduction rectification required if court ruling only orders restitution of the taxable base

An entrepreneur sought guidance on how to proceed following the rescission of a tractor purchase contract regarding the refund of amounts and the rectification of invoices. The DGT clarified that if a court ruling orders the restitution of the price without mentioning VAT, neither the rectification of the invoice nor the reduction of the deduction is required.

The question raised

Consequences of the described factual scenario for the purposes of Value Added Tax, specifically, the procedure for the refund of the amounts due and the rectification of invoices.

The DGT's ruling

The return of goods due to contract rescission is not a transaction subject to VAT, but rather a modification of the tax base. If the judicial ruling determines that only the tax base must be reimbursed, on the understanding that the VAT has already been paid and deducted, neither the rectification of the invoice by the seller nor the reduction of the deduction by the buyer is appropriate. Likewise, the refund of the price does not constitute a transaction subject to tax, therefore the buyer is not required to issue an invoice for the return of the good.

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