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The tax will be accrued:
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At the time of total or partial payment of the price for the amounts effectively received.
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December 31 of the year immediately following the year in which the transaction was carried out if collection has not occurred.
The moment of full or partial collection of the price of the transaction must be proven.
The tax must be charged at the time of issuing and delivering the invoice, but it will be deemed to have occurred at the time of the accrual of the transaction.
Taxpayers covered by RECC may make their deductions with the particularity that the right to the deduction arises:
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At the time of full or partial payment of the price for the amounts actually paid.
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December 31 of the year immediately following the year in which the transaction was carried out if payment has not been made.
The moment of full or partial payment of the price of the operation must be proven.
In the case of recipients of operations affected by this regime, the right to deduct the fees incurred by these operations arises:
- At the time of full or partial payment of the price for the amounts actually paid.
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December 31 of the year immediately following the year in which the transaction was carried out if payment has not been made.
Example:
Businessman “A” purchases goods in the first quarter of year n for an amount of €600,000 from another businessman “B” who is covered by the special cash basis regime.
Half of the price is paid on July 1 of year n and the remainder on February 1 of year n+2. When will businessman “A” be able to deduct the input VAT on the purchase?
The accrual and, therefore, the right to deduct the tax will occur on July 1 of year n for the amount paid (300,000 x 21% = €63,000) and on December 31 of year n+1 for the remaining amount (300,000 x 21% = €63,000).