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V4143-15 30 December 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Obligation to increase VAT taxable base following withdrawal of legal claim after debt recovery

A company reduced its VAT taxable base due to a client's insolvency and subsequently recovered the debt from guarantors, leading to the withdrawal of legal proceedings. The DGT clarifies whether the taxable base must be rectified upwards following this recovery.

The question raised

Whether the tax base of the transaction must be increased following collection.

The DGT's ruling

If the creditor withdraws the judicial claim or reaches a collection agreement following a notarial demand, they must increase the tax base. To this end, they must issue a corrective invoice within one month from the withdrawal or the agreement. However, if the process concludes through a judicially approved settlement agreement, an upward modification is not applicable.

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