- VAT relief on bad debts is allowed under Article 90 of the EU VAT Directive
- Member States have the right to set conditions for businesses to claim VAT bad debt relief
- CJEU has confirmed that Member States cannot make it virtually impossible for taxpayers to claim relief
- Recent CJEU judgment in the Consortium Remi Group case clarified time limits and notification requirements for claiming relief
- Taxpayers have a right to interest on bad debt reclaim if tax authority delays payment
- Businesses should consider their processes to meet conditions for claiming VAT relief on bad debts
Source: assets.kpmg.com
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.
Latest Posts in "European Union"
- EU Updates E-Invoicing Standard and Proposes Major Financial Sector Tax Reforms
- EU Approves EN 16931 E-Invoicing Updates, Proposes Financial Sector Tax Harmonization Reforms
- Simplifying Triangular Transactions in VAT: Navigating Compliance in 2026
- EN16931 Goes ViDA-Ready: What CEN’s 2026 Approval Changes for EU e-Invoicing
- Intrastat Thresholds and Deadlines: Key Changes for 2026 Across EU Member States
