Back to index
V2031-23 12 July 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · reversión de bienes

VAT on land transfer cannot be rectified if reversion occurred more than four years ago

A City Council enquired whether the reversion of land transferred in 2007 allowed for the rectification of the VAT originally charged. The DGT ruled that, as the reversion took place in 2013, the period for rectifying the tax amount has already expired.

The question raised

Whether the reversal of the aforementioned land would give rise to the rectification of the Value Added Tax amount originally charged upon its transfer and, if applicable, whether the maximum period for carrying out said rectification has expired.

The DGT's ruling

The modification of the tax base due to a transaction becoming void in accordance with the Law (Art. 80.Two VAT Law) occurs at the moment such circumstance arises. The rectification of the tax amounts must be carried out within a maximum period of four years from the occurrence of said circumstance. In this case, as the reversal occurred in 2013, the period for rectifying the tax amount of the 2007 transfer has expired.

Book your free first meeting