In principle, a simple reminder letter will not suffice for the Administration to justify your VAT recovery claim. It is extremely important that you can show that you have done everything to get the invoice paid. In order to reclaim the VAT, you must be able to prove that the claim is actually irrecoverable. If the invoice is paid at a later date, the 'depreciation' must be taken back. This will remove the invoice from your income for the time being. In this case, you or your accountant must create a 'value reduction'. It is not certain that the invoice will be paid.Īre you not sure that the invoice will be paid (in full)? This does not automatically mean that you can definitively write this invoice off. This lets your customer know that you remain the owner of the goods that have been delivered until the invoice is paid in full. Tip: jyou can include a retention of title in your invoice conditions or delivery notes.
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Is the invoice definitively unpaid? Then you can submit the lost amount as a professional expense. No appeal is possible against the court's ruling. If you work via the court, you must wait for the final judgement before you can reclaim the VAT. Only in the case of a customer who is in default is a credit note not a legally valid means of reclaiming VAT, as a certificate of irrecoverability is then required.Īnother way of demonstrating that the invoice will not be paid is to come to an agreement with your customer via an amicable settlement or through the court. You can demonstrate this, for example, by means of a certificate of irrecoverability.įor B2B customers it is, in principle, compulsory to issue a credit note for the outstanding amount of an unpaid invoice in order to reclaim the VAT. You have clearly demonstrated that your customer cannot pay while you have done everything to collect the money.Your client is in a judicial reorganisation (formerly known as the Continuity of Enterprises Act or WCO).You do this in your VAT return via box 62 'regularisations in favour of the taxable person'.Īttention! You can only reclaim the VAT in the following cases: In the event that you are certain that the invoice will never be paid, you can also reclaim the VAT. You will usually receive a certificate from the receiver or the bailiff stating that you will not receive any more payments.įor a file in the Unpaid procedure where this situation occurs, you can also obtain this certificate of irrecoverability through us. This can happen if your customer goes bankrupt and the receiver cannot pay anything to you as a creditor. If you are really sure of the loss, you can write off the invoice definitively. It is certain that the invoice will not be paid (the loss is certain) This applies to invoices issued after delivery or services as well as to advance invoices. Within the B2B context, the VAT becomes, in principle, payable from the moment the invoice is issued. In this article, we focus on the business-to-business relationship (B2B). Are they customers-businesses (B2B), customers-private individuals (B2C) or customers-government institutions (B2G)? To identify this time, you need to determine the nature of your customers.
This is the moment when the VAT due can be claimed. The due date is the date you issue the invoice. There are two possible scenarios: The due date It is sometimes possible to (partially) exempt the invoice from corporation tax and reclaim the VAT. Is your business a company? Then fortunately there are solutions. You can therefore have to pay VAT on unpaid invoices. For tax purposes, all invoices issued are eligible, including those that have not yet been paid. If you do not react, your company will be taxed on this anyway. Your customer does not pay your invoices. What can you do then? Can you reclaim the transferred VAT? Can you avoid paying taxes on it or reclaim any taxes paid? Unpaid invoices It only becomes a real problem if the invoice is not paid at all.