Reminder fees that an entrepreneur collects from defaulting payers after the agreed payment period has expired on the basis of their terms and conditions or other documents (e.g. reminder letters) are not subject to VAT as real compensation according to the UStR. The reimbursement of the costs of a legal dunning procedure is not part of the remuneration for a taxable service, but real, non-taxable damages. On the other hand, so-called “dunning fees” from entrepreneurs who deal with the collection of receivables on a commercial basis represent taxable fees for their debt collection activities.
Source: pkf.at
