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V2876-19 18 October 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · deducción

Input VAT can be deducted in subsequent financial years if four years have not elapsed

A company has enquired whether it can deduct VAT amounts that it failed to justify during a previous inspection. The DGT has ruled that this is possible, provided that four years have not passed since the right to deduction arose.

The question raised

Whether said amounts incurred for Value Added Tax may be deductible in subsequent financial years.

The DGT's ruling

The right to deduction may be exercised in the settlement period in which the amounts are incurred or in subsequent periods, provided that four years have not elapsed since the right arose. If there has been a request for information or an inspection, the amounts recorded are deducted in the appropriate settlements, and those not recorded are deducted in the period of their recording or in subsequent periods, always within the four-year period.

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