Recovery of unpaid VAT

In the event that your company has unpaid debts, you should be aware that changes have been introduced with the aim of recovering the VAT charged, and the deadlines for carrying out the necessary procedures have been extended.

Our law firm will advise you both in the recovery of the unpaid VAT and in the deduction of the VAT.

In the event that we have unpaid debts in our company there are two moments to carry out the recovery of VAT:

• a) When six months have passed since the sale without the debt having been paid, you have three months to reclaim the VAT.
• b) If you are a large company, when one year has passed since the sale, you have another three months to claim the refund.

Do not forget that in order to be able to claim the refund it is necessary:

• a) A judicial or notarial claim.
• b) The rectification of unpaid invoices must be made within three months of the aforementioned deadlines.

The deadline for rectifying the invoice has also been modified in the event that our debtor has been declared in insolvency proceedings, having changed to three months from the date of publication of the insolvency proceedings in the Official State Gazette.

The latest improvement that has been introduced is that the deadline for notifying the Inland Revenue of the modification made is one month from the issuance of the rectifying invoice; however, according to the resolution of 17 July 2014, it has been established that this automatic refusal is not correct. The tax authorities must justify that the delay in the communication has caused an effective damage (for example, it has prevented them from controlling whether, after receiving the corrective invoice, the defaulter has returned the VAT that was initially deducted).