Binding tax ruling
Mechanism to obtain a pronouncement from the DGT on the application of tax rules to a specific situation before the tax liability arises. The DGT responds within 6 months. If the ruling is binding and the taxpayer applies the DGT criterion, they are exempt from penalty liability even if the ruling is wrong, provided the facts match the ruling.
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Other Tax law terms
Mandatory electronic invoicing system from AEAT requiring invoicing software to guarantee integrity, preservation, traceability and unalterability of billing records.
AEAT procedure to verify compliance with tax obligations. The taxpayer has the right to legal counsel, copies of proceedings and a maximum 18-month timeframe.
Quantity resulting from measuring the taxable event, to which the tax rate is applied to determine the tax liability. Example: in personal income tax, it is the sum of net income minus reductions.
Legal assumption whose occurrence gives rise to the tax obligation. Example: in VAT, delivery of goods or provision of services; in property transfer tax, transfer of real estate.
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