Doctrine by topic · DGT Observatory

Passed-on Quotas: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 37 rulings · 2014–2024

Current position

The modification of the tax base due to definitive non-payment or contract rescission allows for the rectification of passed-on quotas. This rectification must be carried out within a period of four years from the occurrence of the circumstance of the debt's extinction. The taxpayer may opt for the self-assessment rectification procedure or regularize through subsequent tax returns.

The DGT's position remains constant regarding the possibility of rectifying quotas due to non-payment or rescission, but it has specified the requirements for doing so. It has emphasized the need to pursue collection through judicial claim or notary requirement to validate the reduction of the tax base for uncollectible credits. Likewise, it has clarified the calculation of the statute of limitations periods for rectification.

Turning points

  1. V0210-18

    Establishes that to reduce the tax base for uncollectible credits, it is necessary to pursue collection through judicial claim or notary requirement with specific requirements.

  2. V1473-19

    Specifies that the four-year period to rectify quotas is calculated from the moment the property is made available to the acquirer.

Analysis based on 33 of 37 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V2539-24 10 Dec 2024

Requirements for VAT adjustment due to bad debts

SG de Impuestos sobre el Consumo
base imponiblecuotas repercutidascréditos incobrablesrectificación de cuotasdevengo LIVA — Ley 37/1992 del IVA art. 80.CuatroLIVA — Ley 37/1992 del IVA art. 89
Affects CompanyExpat · Non-residentIndividual
V0892-18 6 Apr 2018

Requirements for reducing the VAT taxable base due to bad debts

SG de Impuestos sobre el Consumo
base imponiblecréditos incobrablescuotas repercutidasdevengoempresario o profesional LIVA — Ley 37/1992 del IVA art. 75LIVA — Ley 37/1992 del IVA art. 78
Affects CompanyExpat · Non-residentIndividual
V0210-18 30 Jan 2018

VAT taxable base may be reduced for bad debts via notary formal demand

SG de Impuestos sobre el Consumo
base imponiblecréditos incobrablesrequerimiento notarialmodificación de la base imponiblecuotas repercutidas LIVA — Ley 37/1992 del IVA art. 80.4RIVA — RD 1624/1992, Reglamento del IVA art. 24
Affects CompanyExpat · Non-residentIndividual

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