Output VAT Reduction Allowed for Uncollectible Receivables Subject to Litigation Before Insolvency Proceedings

• Taxpayers can decrease output VAT for uncollectible receivables after a final court decision on bankruptcy, discontinued enforcement, or compulsory settlement proceedings.
• The receivables must have been subject to litigation before these proceedings began.
• This is a new condition introduced by the amendments.

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.

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