- VAT relief on bad debts is allowed under Article 90 of the EU VAT Directive
- Member States have the right to set conditions for businesses to claim VAT bad debt relief
- CJEU has confirmed that Member States cannot make it virtually impossible for taxpayers to claim relief
- Recent CJEU judgment in the Consortium Remi Group case clarified time limits and notification requirements for claiming relief
- Taxpayers have a right to interest on bad debt reclaim if tax authority delays payment
- Businesses should consider their processes to meet conditions for claiming VAT relief on bad debts
Source: assets.kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
