Frequently asked questions in relation to VAT on property rentals

The taxable base will be the consideration, including any credit in favor of the landlord, such as community fees, property tax, heating, water, electricity, construction and other expenses that are passed on by the landlord to the tenant.

Yes, since it is a credit in favor of the landlord and, therefore, forms part of the rental consideration.

DGT Query V0127-20

The owner may consider the credit as uncollectible and proceed to reduce the tax base, with the requirements of article 80.Four of Law 37/1992 (in the case of a rental: 6 months or 1 year have passed since the accrual, request payment from the tenant by means of a legal claim or notarial request, issue a corrective invoice within the following three months and submit within the following month the form 952 to inform the AEAT of the reduction in the tax base).

The link to Form 952 can be found under Related Content on this page.

Once these requirements have been met, they will recover the output VAT not collected from the tenant, including a negative tax base and accrued fee in boxes 14 and 15 of form 303.

To calculate the deadline for issuing the corrective invoice and the form 303 in which to make the adjustment, you can consult the calculator for deadlines for changing the tax base and other corrections:

https://www2.agenciatributaria.gob.es/wlpl/AVAC-CALC/CalculadoraMBIServlet

Detailed information on requirements to recover VAT from bad debts in Related content "How can I recover VAT unpaid by my clients?" .