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V2795-23 16 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · base imponible

No corrective invoice required to charge VAT following partial recovery of a debt in insolvency proceedings

A professional asks whether a new VAT invoice must be issued when collecting part of a debt from a company in insolvency proceedings after having previously reduced the taxable base. The DGT rules that there is no need to rectify the taxable base or refund the VAT, as the insolvency proceedings have not concluded due to the specific circumstances that would mandate such action.

The question raised

Whether it is necessary to issue a new invoice for the amount currently received, charging the corresponding Value Added Tax amount.

The DGT's ruling

It is not appropriate to modify the tax base or issue a corrective invoice to charge the VAT amount when part of the debt is collected, as the insolvency proceedings have not concluded pursuant to the grounds set forth in Article 465 of the Insolvency Law. Regarding Personal Income Tax (IRPF), income must be recognized on an accrual basis, and subsequent collection shall be treated as a reversal of a valuation adjustment. The 30% reduction for irregular income does not apply, as the case does not meet the regulatory requirements nor is it recognized in a single period.

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