Professional Credit in Bankruptcy: VAT and Taxable Base Strictly Linked to Insolvent Professional’s Credit

• The Court of Cassation affirmed the validity of a principle related to issuing invoices for professional services rendered before the start of a bankruptcy procedure
• Professionals who submit claims in a bankruptcy procedure have a credit for professional services, including taxable amount and value-added tax, which are closely linked
• If the bankruptcy court approves partial payment for pre-bankruptcy professional services, the invoice issued by the professional should reflect the total amount received minus the related VAT
• If the amount paid by the bankruptcy court is less than the total professional credit, including VAT, the professional must proportionally reduce the taxable base and tax when issuing the invoice

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.

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