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VAT practical manual 2021.

Cases of uncollectible credits and declaration of bankruptcy

The modification of the tax base for bad debts carried out by taxpayers who are not covered by the RECC , will determine the birth of the right to deduct the contributions borne by the taxable debtor covered by said special regime corresponding to the modified operations that were still pending deduction.

On the other hand, the declaration of bankruptcy of the taxpayer covered by the RECC or of the recipient of its operations will determine, on the date of the bankruptcy declaration order, the accrual of the passed-on fees and the deduction of the fees borne with respect to the operations to which the RECC has been applied, which were still pending accrual or deduction.