- From January 1, 2025, companies must repay VAT deductions on invoices unpaid for over six months after their due date. This applies only to VAT deductions from supplies after January 1, 2025. The deduction must be reduced for the unpaid amount in the tax period when the six-month deadline passes. If the invoice is later paid, the deduction can be reinstated. The rule does not apply to reverse charge transactions. For monthly filers, the first correction is in July 2025 (for invoices due in January and unpaid by July 31). For quarterly filers, the first correction is in Q3 2025 (for invoices unpaid by September 30). The Tax Administration has issued official guidance on these procedures.
Source: asd-int.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.
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