Source Taxlive.nl
Unofficial translation
This VAT refund scheme pertains to an irrecoverable claim, whereby the entrepreneur has already paid the VAT included in that claim, while he will not receive it from the customer. The purchaser entrepreneur in turn does not pay the claim including the VAT, but has deducted the unpaid VAT. If a customer does not pay, a liquidity problem can arise for the supplying entrepreneur. Entrepreneurs can therefore receive a refund of VAT included in a claim in any case if payment has not been made after one year. If the refund has been granted and the claim is subsequently paid, the entrepreneur must make a correction.
The downside of the refund is that the purchasing entrepreneur must repay the amount of VAT included in the unpaid claim and that has already been deducted by him. A shortening of the term of one year would lead to faster returns in the event of non-payment and necessarily also to faster indebtedness to the non-paying customer. The State Secretary expects that the number of corrections to the amounts of the refund and the new indebtedness on the part of the entrepreneurs involved will increase.
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