Business successful bidders may issue invoices and settle VAT in judicial auctions

In forced execution proceedings, determining who should manage invoicing and the payment of VAT following an adjudication has raised operational doubts. The Directorate General of Taxes (DGT) has clarified the scope of the powers held by those who acquire assets through judicial auctions.

What the DGT has resolved

The DGT establishes that, within the framework of forced execution proceedings, those successful bidders who hold the status of businessperson or professional are authorized to perform the following actions on behalf of the taxable person:

• Issue the corresponding invoice for the transfer from the auction.
• Charge the tax amount.
• File the VAT declaration and settlement.
• Pay the tax to the Administration.

However, this right is conditioned on the nature of the acquirer. If the successful bidder does not hold the status of businessperson or professional, they lack the authority to exercise these tax management competencies.

What this means for you

If your company participates in judicial auctions or auctions and is awarded an asset, you have the legal capacity to manage the VAT of the transaction directly. This allows for the centralization of tax management under the accounting structure of the successful bidder itself, acting on behalf of the taxable person.

Nevertheless, this authority carries a specific administrative responsibility. The exercise of these powers obliges the successful bidder to file Form 309 within a maximum period of one month from the date the payment for the adjudication is made. Failure to meet this deadline or the required filing method could lead to contingencies before the Tax Administration.

What should be done

It is necessary to verify the status of businessperson or professional of the successful bidder before proceeding with the tax management. In the event that the adjudication is made by an individual without economic activity, the management of the invoice and the VAT settlement cannot be assumed by them under this regime. It is recommended to analyze the particular situation of each adjudication to ensure that compliance with Form 309 is carried out within the one-month period established by current regulations.