Deadline for reclaiming VAT on certain bad debts claims expires on 21 April 2020

As indicated earlier, the deadline for reclaiming the VAT of bad debts (irrecoverable claims) in a separate procedure will expire on 21 April 2020.

Pursuant to an amendment of law, from 1 January 2020 it is possible to reclaim the VAT of receivables that have become irrecoverable (see our January newsletter); however, this is only available in a narrower scope, as transactions completed before January 2016 are excluded. Therefore, we would like to call attention to a different solution made possible by a decision of the European Court of Justice.

With a view to the current difficult economic situation, this solution offers an excellent opportunity for improving the cash flow situation by reclaiming the VAT that was previously considered “stuck in”.

To read the newsletter in English, please click below:

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Tax Newsletter 2020/9.

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