Expiration of the right to deduct VAT: Criteria and Time Limits according to Spanish Law

• The “dies a quo” for the calculation of the expiration of the right to deduct is set at the moment of the birth of the right.
• It is important to distinguish between the birth of the right to deduct and the exercise of that right.
• The exercise of the right can only be done in the tax return for the tax period in which the deductible amounts were incurred, or in subsequent periods, as long as four years have not passed since the birth of the right.
• The Supreme Court ruled on this matter in a judgment dated February 21, 2012.
• This criteria is reiterated in the RG 00-03424-2013, dated September 22, 2015.

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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