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V2858-18 5 November 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Reduction of the VAT taxable amount due to bad debts: requirements and deadlines

A company has requested clarification regarding the deadline for adjusting the VAT taxable amount in cases of doubtful debts. The DGT explains that a reduction is applicable if the requirements for bad debts are met and establishes the specific deadlines for rectification.

The question raised

Treatment of the aforementioned operation for the purposes of modifying the taxable base in Value Added Tax; in particular, the period in which the same must be carried out.

The DGT's ruling

The taxable base may be reduced proportionally when receivables are totally or partially uncollectible, provided that the requirements of Article 80.Four of the VAT Law are met. The modification must be carried out by means of a credit note within three months following the expiration of the six-month or one-year period required for uncollectibility. Said modification may not be carried out after the expiration of that three-month period.

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