Because of the economic reality through we live, every time it is more common to have unpaid invoices from our clients. That is why, it turns out suitable to know that exists the possibility of recovering the VAT joined to the Tributary Agency, by reducting of the tax base when our clients are on insolvency.

Procedure to recover the VAT

There are two different procedures depending on if our client has presented insolvency proceeding or not. The two different procedures are the following ones:

Debtor without insolvency proceeding who does not pay the invoice:

– 1 year from the income of the Tax without the payment of everything or part of the credit. This term diminishes to 6 months when our business volume had not exceeded 6.010.121,04 € during the previous natural immediate year.
– That such a circumstance has remained reflected in the book of sent invoices.
– That the debtor is businessman or professional, or, the unpaid tax base was superior to 300 Euros.
– That has urged the collection of the credit by judicial claim or notarial requirement.
If these requirements are fulfilled, there will proceed to issue the invoice within the 3 following months from conclusion of the period of one year or six months, respectively, counting from the income of the operation, which will have to communicate to the Tributary Agency in the following month.
Fulfilled the above, you will be able to reduce the amount of the VAT which repercussion has rectified, in the declaration – liquidation of the period of liquidation corresponding to the moment in which it had sent the new invoice.

Debtor with insolvency proceeding:

In this situation, the new invoice must be placed within one month from the following day of the Insolvency Proceeding Publication and the communication to the Tributary Agency must be made in the following month.