{"id":9036927,"date":"2024-06-19T07:00:04","date_gmt":"2024-06-19T07:00:04","guid":{"rendered":"https:\/\/www.gremicat.es\/?p=9036927"},"modified":"2024-06-04T15:03:35","modified_gmt":"2024-06-04T15:03:35","slug":"expiry-of-the-right-to-deduct-vat","status":"publish","type":"post","link":"https:\/\/www.gremicat.es\/en\/expiry-of-the-right-to-deduct-vat\/","title":{"rendered":"Expiry of the right to deduct VAT"},"content":{"rendered":"\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

In the recent resolution of the Central Economic-Administrative Court\n(TEAC), number 1744\/2022 dated March 18, 2024, a crucial clarification has\nbeen provided regarding the computation of the expiration of the right to\ndeduct VAT.<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

\u00a0<\/p>

In the recent resolution of the Central Economic-Administrative Court<\/span>
(TEAC), number 1744\/2022 dated March 18, 2024, a crucial clarification has<\/span>
been provided regarding the computation of the expiration of the right to<\/span>
deduct VAT. It is essential to understand both the time frame for exercising<\/span>
this right and the requirements that must be met for its effective application.<\/span><\/p>

\u00a0<\/p>

Determination of the dies a quo.<\/strong>
The resolution clearly distinguishes between the \u201cbirth of the right to deduct\u201d
and its \u201cexercise\u201d. The dies a quo or starting point for the computation of the expiration of this right, is set now when the right is born, i.e. when the deductible installments are accrued.<\/p>

\u00a0<\/p>

Exercise of the right to deduct.<\/strong>
The exercise of the right to deduct can only be made in the tax return corresponding to the settlement period in which the holder has borne the
deductible installments, or in the tax returns of successive periods, provided
that the period of four years has not elapsed since the right arose.<\/p>

\u00a0<\/p>

Jurisprudence<\/strong><\/p>

The TEAC reinforces its decision based on the case law of the Court of Justice of the European Union (CJEU), which establishes that the right to deduct VAT arises simultaneously with the chargeability of the tax. In addition, to exercise this right, certain subjective and objective requirements
must be met, including the status of entrepreneur or professional of the recipient of the transaction, and that the goods or services acquired are intended for the performance of specific operations.<\/p>

Implications for business practice<\/strong>
Given this clarification, it is essential that businesses adjust their accounting and VAT reporting processes to ensure that the established deadlines for VAT deduction are respected, thus avoiding possible forfeiture of the right.<\/p>

\u00a0<\/p>

To be considered:<\/strong><\/p>