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V3772-15 30 November 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IVA · entrega de bienes

Fraudulent sales by an employee require invoicing and taxation for VAT and Corporate Tax

A vehicle company inquired whether it was required to issue invoices for vehicle sales where an employee misappropriated the funds. The DGT ruled that the sales are attributed to the company and must be subject to both VAT and Corporate Tax.

The question raised

Is it correct that, as a consequence of these circumstances, the company is not required to issue invoices, since it has neither sold nor collected payment for the vehicles?

The DGT's ruling

Sales carried out by an authorized employee on behalf of the company are operations of the company, therefore the VAT taxable event occurs upon the delivery of goods. In Corporate Income Tax, income must be attributed to the fiscal year in which it accrued, and the company must rectify errors from previous fiscal years. The potential expense due to the employee's insolvency shall be included in the taxable base of the fiscal year in which the debt is recognized, through an extra-accounting adjustment.

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