- The General Court of the European Union ruled that Article 90(1) of Directive 2006/112/EC precludes a subcontractor who acquired a contractor’s claim by assignment from rectifying the VAT taxable base in case of total non-payment.
- The assignment of the receivable from contractor to subcontractor is considered full payment between them, so no VAT rectification is justified in that relationship.
- Only the original contractor, as the taxable person for the transaction with the developer, has the right to adjust the VAT taxable base for non-payment, not the subcontractor who acquired the claim.
- The right to adjust the VAT taxable base cannot be transferred by civil law assignment of receivables.
- National law and the judgment confirm that only the taxpayer who issued the original VAT invoice can modify the taxable base for uncollectible debts.
Source: allyon-etl.es
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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