Taxpayers have the right to deduct VAT incurred: TEAC Resolution clarifies

The deduction of VAT input tax is a right of the taxpayer, and not a tax option under Article 119.3 of the General Tax Law. Taxpayers can request the rectification and corresponding refund of undue payments regarding a complementary VAT self-assessment, in which higher input tax amounts have been included, in order to conform to the criterion followed by the tax administration in a previous inspection procedure and to avoid being sanctioned. This follows the procedure provided for in Articles 120.3 and 221.4 of the aforementioned Law.

The purpose of this cassation appeal, from the standpoint of its objective casuistic interest for forming case law, is to determine whether the taxpayer can request the rectification and corresponding refund of undue payments included in a complementary VAT self-assessment, in which higher input tax amounts have been included, filed in order to conform to the criterion followed by the tax administration in a previous inspection procedure and with the aim of avoiding being sanctioned, or whether, on the contrary, in order to exercise the right to deduct input tax, it should be done in another subsequent self-assessment within the legally established period of expiration.

The answer to this question must be that the deduction of VAT input tax is a right of the taxpayer, and not a tax option under Article 119.3 of the General Tax Law. Taxpayers can request the rectification and corresponding refund of undue payments regarding a complementary VAT self-assessment, in which higher input tax amounts have been included, in order to conform to the criterion followed by the tax administration in a previous inspection procedure and to avoid being sanctioned, following the procedure provided for in Articles 120.3 and 221.4 of the aforementioned Law.

Source: audiconsultores-etlglobal.com

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