VAT deduction after being de-registered
Binding tax ruling V2967-16 issued by the Spanish General Tax Directorate on June 27, 2016.
The consultant entity, after being de-registered in its activity, expects to recover its input VAT corresponding to previous tax years, due to the fact of the receiving of rectifying invoices corresponding to said previous years.
To resolve this query, the Spanish General Tax Directorate refers the judgment of 3 March 2005 issued by the European Court of Justice, case C-32/03 Fini H., which follows is not automatically lost the status of taxable person by the mere cessation of activity, whether as a result of the exercise of this activity are subsequently incurred expenses directly related to that allowing the deduction of the corresponding VAT quotas paid if the remaining legal requirements are met.
In this sense, is considered that exists a relationship direct e immediate between the activity carried out by the consultant and the VAT quotas that in its time, the company paid when still exercised the activity, and that must be object of deduction currently as consequence of the expedition of rectifying invoices from their suppliers.
Therefore, although the consultant has submitted the de-registration model (036 form) de-registering its activity, if the effective cessation has not been produced, it would be still obliged to meet its compliance obligations.
Accordingly, this entity may exercise its right to deduct the input VAT quotas and, where applicable, request the refund of the same, through the submission of the corresponding VAT return (303 form).