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V2567-19 19 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · permuta

VAT on barter exchanges cannot be rectified if the contract is not rescinded or the price altered

A taxpayer inquired whether they could rectify the VAT on an original barter exchange following a breach of contract and the subsequent assignment of rights to a third party. The DGT ruled that rectifying the taxable base is not possible without a judicial or administrative rescission of the contract or a change in price. Furthermore, the assignment of rights is not subject to VAT if the taxpayer is not a business owner.

The question raised

Whether it is possible to rectify the Value Added Tax amounts accrued as a consequence of the original exchange.

The DGT's ruling

To rectify the VAT amounts of a transaction, there must exist a final resolution that nullifies the transaction or an alteration of the price, pursuant to Article 80 of the VAT Law. Since the resolution of the exchange has not occurred nor has its price been altered, the modification of the tax base is not applicable. Furthermore, the transfer of rights by a non-entrepreneur is not subject to VAT.

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