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V3121-20 20 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

VAT refund cannot be requested if the right to deduction has expired

A cooperative inquired whether it could recover VAT paid in 2016 after the Administration determined the tax accrual occurred in 2012. The DGT ruled that, as four years have passed since the accrual without the deduction being exercised, the right has expired and a refund is not possible.

The question raised

Whether a refund of said Value Added Tax amounts could be requested.

The DGT's ruling

The right to deduction expires if it is not exercised within the four-year period from the date of accrual. If the right to deduct has already expired due to failure to exercise it within the period, the right to a refund of said amounts is not generated. The doctrine allowing the refund of uncompensated excesses is only applicable when the right to deduct was correctly exercised at the appropriate time.

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