If your quarterly VAT return for Q4 2025 (Modelo 303) has a negative result we will request that it be "to be offset or compensate", by default. Consult the forecast of the result in: Tax reports > VAT > Q4.
What happens if I leave the VAT result to be offset in Q4?
This means that the VAT amount will be carried forward for the next 4 years, as long as you continue to have economic activity. You do not lose the VAT amount in any case.
This is the most conservative option and allows you to build up a VAT credit that you can use in the future when you have output VAT to be paid. You have up to 4 years to request a refund of the VAT that you decide to offset now.
How can I request a refund or leave it to be offset in the Xolo dashboard?
When you log into the dashboard, on the main view you will see a section on the right-hand side called “Requires your attention”. There you will find a message stating that the Q4 Form 303 forecast is available.
- Click on that notification.
- Inside, you will be able to choose between:
- Compensate the VAT, or
- Requesting a VAT refund.
👉 If no option is selected, we will submit the return with the VAT amount "to compensate" by default.
Please, select your preference before January 5th, 2026. After this date, changes will no longer be possible.
⚠️ Please note that requesting a VAT refund is often accompanied by a tax authority request to verify that all VAT amounts correspond to expenses that are actually deductible.
The refund process may take up to 6 months. If the tax authorities take longer, they will be required to pay late-payment interest.