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Practical manual VAT 2024.

5. Adaptations of the RIVA to the modifications introduced in the LIVA by the LPGE for the year 2023

A. Modification of the tax base due to uncollectible credits

The modifications made by the LPGE 2023 in the LIVA , regarding the recovery by the taxpayer of the VAT accrued on uncollectible credits, require a modification of the regulation in relation to the modification of the tax base in the case of uncollectible credits as a result of an insolvency process declared by a court of another Member State.

Therefore, with effect from January 2024 and with indefinite validity Royal Decree 1171/2023, of 27 December, modifies article 24 of the Value Added Tax Regulations to include a modification of the tax base in the case of debts when they are insolvency proceedings declared by a court in another State to which Regulation ( ) of the European Parliament and of the Council of 20 May 2015 applies.

Furthermore, in relation to the requirements provided for in the LIVA for a credit to be considered totally or partially uncollectible, the requirement that the taxpayer has requested its collection by means of a judicial claim to the debtor or by means of a notarial request to the same is now added to the possibility that, alternatively, the claim for collection to the debtor is justified by any other means that reliably proves the same.

B. Intra-community acquisition of services

The LPGE 2023 modified the LIVA to exclude from the application of the reverse charge rule real estate brokerage services provided by non-established persons or entities.

This amendment requires limiting the concept of intra-Community acquisitions of services exclusively to cases in which the taxpayer is the recipient.

Therefore, with effect from January 1, 2024 and indefinite validity, Royal Decree 1171/2023, of December 27, modifies article 79 of the Value Added Tax Regulations, to adapt it to the exclusion of the application of the reversal rule of the taxpayer to real estate brokerage services carried out by non-established persons or entities, specifying in relation to the concept of intra-community acquisitions of services that they may only be considered as such in cases where the taxpayer is the recipient .

C. Updating VAT to Community customs regulations

With from January 2024 and indefinite validity, Royal Decree 1171/2023, of 27 December, modifies articles 9, 11 and 12 of the Value Added Tax Regulations, introducing the following modifications thereto for the harmonisation and adaptation of its content to Community customs regulations:

  • In relation to the exemptions in the exports of goods regulated in article 9 of RIVA , those made by anyone who holds the status of exporter in accordance with customs regulations, other than the transferor or purchaser of the good, are added.

  • Regarding the exemptions of article 11 of the RIVA, the references to free zones and free warehouses are replaced by temporary storage situation .

  • As regards the exemptions of Article 12 of the RIVA, the term suspensive regimes is replaced by customs and tax regimes .