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Practical manual VAT 2024.

When you can deduct

The right to deduct arises:

  1. The general rule is that the right to deduct arises when the deductible fees are accrued, provided that there is a supporting document for the operation.

  2. As special rules the following are established:

    1. In the operations assimilated to imports whose declarations are submitted on time: at the end of the period to which the declarations refer, being deductible the VAT fees accrued for carrying out said operations in the model itself, as established in the 2nd paragraph of the article 73.3 of the VAT Regulations.

    2. In the occasional deliveries of new means of transport: when delivery is made.

    3. In the case of deliveries of works of art, antiques and collector's items to which the general tax regime applies: when the tax corresponding to the deliveries of said goods made by the reseller is accrued.

    4. In the special regime of the cash basis: at the time of full or partial payment of the price for the amounts actually paid, or on December 31 of the year immediately following the year in which the transaction was carried out if payment has not been made.

    5. In the operations carried out to carry out the trip that benefits the traveler (article 146 of the VAT Law) that are intended to carry out an operation to which the regime does not apply special for travel agencies (article 147 of the VAT Law): at the time when the Tax corresponding to said operation is accrued.

The right to deduction expires within 4 years from its birth.

Example:

A businessman locates two invoices that he had lost, one corresponding to a service provided to him in 2015 and another for a purchase of goods received in 2019.

The fee incurred for the service is not deductible because more than 4 years have passed since the service was performed. The amount incurred in the acquisition of the goods can be deducted in the next self-assessment that is submitted because it has not been more than 4 years since the goods were made available to the buyer.

If the origin or amount of the deduction is pending the resolution of a dispute through administrative or judicial proceedings, the expiration period begins to run from the date on which the resolution or judgment becomes final.