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V5473-26 13 August 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

Input VAT may be deductible after cessation of activity if four years have not elapsed since accrual

A company inquired whether it could deduct VAT instalments after ceasing its activity and failing a tax audit due to a lack of supporting documentation. The DGT ruled that the cessation of activity does not automatically terminate taxable person status and that the right to deduction may be exercised provided that four years have not passed since the date of accrual.

The question raised

Question posed: Whether the deduction of such input VAT is possible currently after having ceased the activity.

The DGT's ruling

The status of taxpayer is maintained until effective cessation and deregistration from the census occurs, including the liquidation of assets. The right to deduction is a right of the taxpayer and not a tax option, therefore it may be exercised in the period of accrual or in subsequent periods within the four-year period. If there was no administrative controversy that interrupted the period, the calculation is made from the birth of the right (accrual).

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