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V3643-20 28 December 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

VAT taxable base may be reduced for bad debts if specific requirements are met

A professional has enquired whether they can recover VAT from an invoice that has remained unpaid since 2019. The DGT has ruled that it is possible to reduce the taxable base provided that the conditions for bad debts are met and the rectification procedure is followed.

The question raised

Possibility of recovering the Value Added Tax settled but not collected from the debtor.

The DGT's ruling

If the volume of operations is less than 6,010,121.04 euros, the taxable base may be reduced after six months or one year have elapsed from the accrual without the credit having been collected. It is necessary that the non-payment is recorded in the registry books, that the recipient is a business owner or that the taxable base exceeds 300 euros, and that collection has been sought through judicial claim or notary requirement. The modification requires issuing a corrective invoice and communicating it electronically to the AEAT within one month.

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