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V3243-20 30 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

VAT input tax may be deducted provided four years have not elapsed since its accrual

A company in liquidation has enquired whether it may deduct VAT amounts that were previously denied following an inspection. The DGT has ruled that this is possible, provided the four-year limitation period has not expired and accounting rules are observed.

The question raised

Whether it may declare said amounts deductible for Value Added Tax purposes, given that it is currently inactive and in liquidation.

The DGT's ruling

The right to deduction may be exercised in the tax return for the period in which the amounts were incurred or in subsequent periods, provided that four years have not elapsed since the right arose. The four-year period is interrupted from the notification of the commencement of the inspection proceedings until the resolution of the claim becomes final. The entity may deduct the amounts provided that said period has not expired and the requirements of Law 37/1992 are met.

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