Article 14.2.c) of Royal Decree 520/2005, of May 13, in light of the jurisprudential principles of comprehensive regularization of the tax situation of the parties involved and the prohibition of unjust enrichment, must be interpreted in such a way that in the case of unearned and, therefore, improperly charged Value Added Tax installments, where the improperly deducted installments by the recipient have been previously reduced and the appropriateness of their right to a refund has been verified in accordance with the principle of comprehensive regularization, the improper VAT charged should be reduced in the settlement carried out by the party that improperly charged it, and, if applicable, the simultaneous recognition of the right to a refund of the improperly charged installments in favor of the party that bore them.
Source: audiconsultores-etlglobal.com
