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V3755-15 26 November 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

VAT taxable base may be reduced by the unpaid debt portion not covered by surety insurance

A company has enquired whether it can adjust its VAT taxable base regarding the amount of an unpaid debt that is not covered by its surety insurance. The Directorate General for Taxes (DGT) has ruled that a partial adjustment is possible for the non-indemnified portion.

The question raised

It is questioned whether the taxable base can be modified for the portion corresponding to the amount of the unpaid debt that is not covered by the insurance.

The DGT's ruling

The taxable base may be reduced proportionally when the credits of the passed-on installments are totally or partially uncollectible. If the surety bond does not cover the total amount, it is understood that the insured amount corresponds proportionally to the taxable base and the VAT installment. Therefore, only a partial modification of the taxable base is appropriate for the portion not covered by the insurance.

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