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V2028-17 26 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · permuta de terreno

VAT must be rectified and the tax amount refunded if future building delivery is converted into cash payment due to insolvency proceedings

An individual entered into a land swap agreement for future building construction and paid the corresponding VAT. Following the developer's declaration of insolvency and the commencement of the liquidation phase, the procedure for handling the tax must be determined.

The question raised

Modification of the tax base.

The DGT's ruling

The commencement of the insolvency liquidation phase converts the obligation to deliver buildings into an obligation to pay in money, which implies a modification of the tax base pursuant to Article 80.2 of Law 37/1992. The developer must rectify the initially charged amounts by means of a corrective invoice and refund the amount to the recipient. This is not considered undue income, as the initial charge was carried out in accordance with the Law.

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