How is the deduction carried out
Deductions are made by subtracting from the accrued VAT , the input VAT in the self-assessment of the period in which the input VAT fulfils all the requirements to be deductible or in those of successive periods, provided that 4 years have not elapsed since the right arose.
In the event of declaration of bankruptcy, the deduction of the input tax that was pending deduction prior to said declaration must be exercised in the self-assessment corresponding to the settlement period in which it was borne.
If the aforementioned contributions have not been included in the corresponding self-assessment, and provided that the period of 4 years has not elapsed since the right to deduct said contributions arose, they may be deducted by rectifying the self-assessment relating to the period in which they were borne.
When the deductions exceed the accrued tax liability, the excess can be offset in subsequent self-assessments, provided that 4 years have not elapsed since the submission of the self-assessment in which the excess arose.
The taxable person may opt for a refund where appropriate.Once the refund is opted for, it is not possible to offset in subsequent self-assessments, irrespective of the time limit within which the refund is made.
When there is a requirement from the Administration or an inspection, only the quotas recorded in the registers are deductible in the appropriate settlements.Contributions not accounted for shall be deductible in the self-assessment of the period in which they are accounted for or in subsequent periods.In both cases, provided that 4 years have not elapsed since the entitlement to the deduction arose.
The deduction should be made on the basis of the foreseeable destination of the goods and services purchased and rectified if it is subsequently altered.