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V2146-17 21 August 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Output VAT may be adjusted if a debt write-off is agreed with a customer

A company inquired whether it could adjust the VAT on a sale after agreeing to a 50% debt write-off with a customer in pre-insolvency proceedings. The DGT ruled that the write-off modifies the taxable base, thereby allowing for the adjustment of the VAT amounts.

The question raised

The consultant wishes to know whether, as a consequence of the agreed reduction, they may proceed with the rectification of the Value Added Tax amounts initially charged.

The DGT's ruling

If a reduction of part of the amount of the debts owed is agreed upon, the tax base of the tax is modified by the corresponding amount. The taxable person must issue and send a new corrective invoice to the recipient. After sending said invoice, the amount of VAT may be reduced in the tax return for the period in which it is issued or in subsequent periods up to one year later.

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