Deadline for reclaiming VAT on certain bad debts claims expires 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”.

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