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V5173-16 29 November 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · rectificación de la repercusión

VAT charged in error may be rectified via credit note and tax return adjustment

An insurance agent sought guidance on how to proceed after incorrectly charging VAT on a transaction that should have been exempt. The DGT indicates that a credit note must be issued and the agent must choose between amending the tax return or regularising the situation in subsequent declarations.

The question raised

Rectification of operations where Value Added Tax was incorrectly charged due to error.

The DGT's ruling

When VAT amounts are incorrectly determined, rectification must be carried out through the issuance of a credit note. The taxable person may choose to initiate the procedure for the rectification of self-assessments or regularize the situation in the tax return for the period of rectification or in subsequent returns during one year. In the latter case, the taxable person must refund to the recipient the amount of the excess VAT charged.

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