Back to index
V2193-22 20 October 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · rectificación de deducciones

VAT deduction must be rectified if the seller issues a credit note following the rescission of a sale agreement

A company sought clarification on whether it was required to repay the VAT deducted from the purchase of a plot of land following a judicial rescission of the sale agreement. The DGT ruled that the obligation to rectify the deduction depends on whether the seller issues the corresponding credit note.

The question raised

Whether the consultant must reimburse the amounts corresponding to the Value Added Tax installments deducted from the purchase of the plot of land.

The DGT's ruling

The obligation to rectify the amounts supported and deducted arises when the seller issues the corrective invoice following the termination of the transaction. If the seller does not issue said invoice within four years from the modification of the tax base, the buyer is not obliged to rectify the deduction. In the event of receiving the invoice, the rectification must be made in the tax return for the period in which the document is received. The statute of limitations for the tax debt for the Administration begins on the day following the end of the filing period for the tax return in which said rectification is included.

Book your free first meeting