Confirmation from DGT: No need to increase VAT taxable base after partial debt collection

• The DGT confirms that the base taxable amount of VAT should not be increased if a partial payment of debts is received by a debtor who is an entrepreneur or professional.
• The consultation in question involves a business owner who had previously adjusted the VAT taxable amount for unpaid credits according to the Law on VAT.
• The DGT states that the VAT taxable amount should only be increased if the recipient of the operation is not acting as an entrepreneur or professional.
• Exceptions to this rule include if the taxpayer withdraws a judicial claim against the debtor or reaches a payment agreement after a notarial requirement.
• A judicially approved settlement agreement is considered equivalent to a court judgment and does not require an increase in the VAT taxable amount.
• In conclusion, the VAT taxable amount should not be increased after a partial debt payment if both the consultant and the debtor are considered entrepreneurs or professionals.

Source: audiconsultores-etlglobal.com

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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