No VAT refund from irrecoverable debtors due to failure to submit a separate refund request

• The Court of Appeal of ‘s-Hertogenbosch has ruled that X BV, a financial holding company, is not entitled to a VAT refund for bad debts as a separate request was required until 1 January 2017.
• X BV issued invoices to BV 1 and BV 3 for VAT-taxed rental of a building and management fees but did not declare this turnover and VAT in their returns.
• The District Court of Zeeland-West-Brabant ruled that additional VAT assessments for 2010 and 2012 were imposed correctly.
• The right to a refund of VAT due to irrecoverable debtors cannot reduce the additional VAT assessment.

Source Taxlive