Doctrine by topic · DGT Observatory

Non-payment: 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

Refined position High confidence 8 rulings · 2014–2022

Current position

The contractual termination with forgiveness of the outstanding debt due to non-payment constitutes a cause for modification of the taxable base pursuant to Article 80.Two of the IVA (Value Added Tax) Law. This allows for the reduction of the taxable base through the issuance of a credit note for the amount of the altered price. The modification must be carried out once the circumstances necessitating it are known.

The DGT's position has shifted from focusing on the impossibility of applying reductions due to insolvency proceedings or through notary requests after the deadline, to recognizing contractual termination with forgiveness as a valid mechanism for modifying the taxable base. The most recent rulings (V2574-21 and V0270-22) specify that the extinction of the obligation through contractual termination allows for the rectification of the tax.

Turning points

  1. V2574-21

    Establishes that contractual termination with forgiveness of the debt due to non-payment is a cause for modification of the taxable base pursuant to Article 80.Two of the IVA Law.

  2. V0270-22

    Extends the possibility of modifying the taxable base to cases of partial forgiveness of the debt due to non-payment through a credit note.

Analysis based on 6 of 8 rulings with a stated position. Updated 2 October 2026.

Rulings on this topic

8
V2240-19 20 Aug 2019

Cannot reduce VAT taxable base if creditor-society link exists

SG de Impuestos sobre el Consumo
base imponiblemodificación de la base imponiblevinculaciónconcurso de acreedoressociedad agraria de transformación LIVA — Ley 37/1992 del IVA art. 79.5LIVA — Ley 37/1992 del IVA art. 80.3
Affects CompanyExpat · Non-residentIndividual

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