- Factoring operation involving the transfer of credits from services or goods subject to VAT suspension
- Court ruling states that VAT must be paid by the provider or seller even if payment is not received from the debtor
- Specific case involved a consortium being taxed for VAT on invoices with deferred payment
- VAT becomes due upon payment of the corresponding fees, with the option to apply general rules
- Consortium did not pay VAT on invoices from 2009 or earlier as they were considered “suspended”
- Tax agency argued that VAT became due when some invoices were transferred to a factoring company
- Factoring operation allows immediate realization of credit, triggering immediate VAT payment
- Court agrees with tax agency’s argument based on factoring contract characteristics
Source: eutekne.info
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.
