No VAT Refund for Uncollectible Debt if Conditions Are Not Met, Court Rules

• A business owner requested a VAT refund for an old, uncollectible receivable, but the tax inspector rejected the request.
• The owner failed to prove that VAT had been paid on the original invoice, which is a required condition for a refund.
• The court confirmed that both proof of VAT payment and non-payment by the customer are necessary for a VAT refund.
• The refund request was rightly denied due to lack of evidence.
• VAT already paid can be reclaimed within one year after the receivable becomes due, even before a customer’s bankruptcy.

Source: fiscount.nl

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.

---

---