Confirmation of Amortization Cost Periodization in Investment Goods VAT. Supreme Court Upholds Use of VAT Regularization Periods.

• The Supreme Court confirms the use of VAT regularization periods in the taxable base of related operations
• The case involves the Foundation Hospital Santa Creu i Sant Pau requesting a VAT refund based on amortization costs
• The Tax Agency rejected the request, applying LIVA article 79.Cinco which considers all costs incurred by the entrepreneur
• The Foundation appealed to the Supreme Court, arguing for alignment with accounting and tax rules rather than VAT regularization rules
• The case aims to determine whether to use accounting rules or LIVA article 107 for the regularization of deducted investment goods
• LIVA article 79 specifies the taxable base for related operations based on market value and proof of relationship
• The case involves operations between related parties due to tax or administrative relationships, family ties, or non-profit entities.

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.