- New Refund Threshold: Starting January 1, 2025, VAT credits can be refunded when they exceed €50, a significant reduction from the previous threshold of €400, benefiting businesses with smaller credits.
- Separate Management of VAT Periods: Businesses can no longer offset existing VAT credits with future VAT liabilities. Each VAT period must now be managed independently, meaning credits will not automatically carry forward.
- Timely Submission Requirement: To have a VAT refund approved, businesses must ensure that their last six VAT returns are submitted on time and respond to any additional information requests from tax authorities within 10 working days.
- Options for VAT Credit Management: Companies with VAT credits can either not apply for a refund, allowing the tax authorities to transfer the credit to a “VAT provision account,” or explicitly request a refund on their tax return, which must meet the new submission and response deadlines.
- Elimination of Administrative Tolerances: The longstanding administrative tolerances regarding slight delays in VAT filings will no longer apply. Businesses must adapt to the new rules to avoid penalties and ensure timely access to VAT refunds, emphasizing the need for diligent accounting practices.
Source vatdesk.eu
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