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V3432-20 26 November 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · herencia yacente

Deceased estates are liable for VAT and must comply with invoicing obligations

A query was raised regarding whether a deceased estate arising from agricultural activity is obliged to invoice work performed. The DGT ruled that the estate is a taxable person for VAT purposes and must comply with invoicing obligations, unless the special agricultural regime applies.

The question raised

Obligation to issue invoices for the purposes of Value Added Tax regarding the work performed in the development of the economic activity.

The DGT's ruling

An unsettled estate is a taxable person for VAT purposes when it carries out transactions subject to the tax, and must comply with the obligations of the regulations, especially the obligation to issue invoices. If the activity falls under the special regime for agriculture, livestock, and fishing, the obligations regarding settlement and collection are limited, but the obligation to invoice may persist under the general regime. In the event that the special regime is not applied, the estate is obliged to issue an invoice for the provision of services.

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