Contents
The tax will accrue:
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At the time of total or partial payment of the price for the amounts effectively received.
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On December 31 of the year immediately following the year in which the operation was carried out if payment has not occurred.
The moment of total or partial collection of the transaction price must be proven.
The impact of the tax must be made at the time of issuing and delivering the invoice, but it will be understood to have occurred at the time of accrual of the operation.
Taxpayers covered by RECC may make their deductions with the particularity that the right to deduction arises:
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At the time of total or partial payment of the price for the amounts actually paid.
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On December 31 of the year immediately following the year in which the operation was carried out if payment has not occurred.
The moment of total 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 borne by these operations arises:
- At the time of total or partial payment of the price for the amounts actually paid.
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On December 31 of the year immediately following the year in which the operation was carried out if payment has not occurred.
Example:
Businessman “A” acquires goods in the first quarter of year n for an amount of €600,000 from another businessman “B” who is covered by the special regime of the cash criterion.
Half the price is paid on July 1 of year n and the rest 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).