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V2950-17 15 November 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen de caja

Taxable base may be reduced for bad debts under the cash basis after the accrual deadline

A partnership applying the cash basis of accounting has enquired as to when it may adjust its taxable base due to unpaid rents. The Directorate General for Taxes (DGT) clarifies that this adjustment can be made following the accrual on the 31 December deadline, without the need to first collect the fees and subsequently request a refund.

The question raised

Modification of the tax base in the described case.

The DGT's ruling

Under the cash basis regime, the modification of the tax base due to bad debts may be carried out from the moment the accrual occurs by application of the December 31 deadline. To this end, the requirements of Article 80.Four of Law 37/1992 must be met, such as the lapse of a period of six months or one year and a judicial claim or notary requirement. The three month period for modification is computed from said December deadline.

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