{"id":21353,"date":"2023-01-30T16:04:30","date_gmt":"2023-01-30T16:04:30","guid":{"rendered":"https:\/\/www.pbs.es\/?p=21353"},"modified":"2023-01-30T16:04:30","modified_gmt":"2023-01-30T16:04:30","slug":"spanish-tax-recover-vat-of-bad-debts","status":"publish","type":"post","link":"https:\/\/www.pbs.es\/en\/spanish-tax-recover-vat-of-bad-debts\/","title":{"rendered":"New Spanish tax measures to recover VAT of bad debts"},"content":{"rendered":"<p>In times of economic crisis, collecting bad debts can become quite a feat. Conscious of this, Spanish tax regulations provide for a mechanism to modify the VAT taxable base, allowing a company to avoid financial hardship when it must pay VAT on a credit that is completely or partially uncollectible. <\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.pbs.es\/wp-content\/uploads\/2023\/01\/iva-clientes-morosos.jpg\" alt=\"recover VAT of bad debts\" width=\"1200\" height=\"450\" class=\"aligncenter size-full wp-image-21349\" srcset=\"https:\/\/www.pbs.es\/wp-content\/uploads\/2023\/01\/iva-clientes-morosos.jpg 1200w, https:\/\/www.pbs.es\/wp-content\/uploads\/2023\/01\/iva-clientes-morosos-980x368.jpg 980w, https:\/\/www.pbs.es\/wp-content\/uploads\/2023\/01\/iva-clientes-morosos-480x180.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1200px, 100vw\" \/><\/p>\n<p>The Spanish Budget Law for 2023 has introduced improvements in the regulations of such mechanisms to recover VAT from uncollectible credits that, in their turn, will permit covering a wider spectrum of cases. <\/p>\n<p>Let us see which are these new tax measures.<\/p>\n<ul>\n<li>The administrative criterion that permits modifying the taxable base of uncollectible credits as a consequence of an insolvency procedure declared by an EU jurisdictional body is introduced in the Spanish VAT Law. Before this change, the Spanish General Directorate of Taxes had permitted this possibility for bankruptcy procedures as foreseen in the (EU) Rule 2015 \/ 848 on insolvency procedures, which, thanks to this change, are now included in the new wording of the Law.<\/li>\n<li>The minimum amount of the taxable base when the debtor is an end consumer is reduced. With this change, the taxable base of transactions exceeding only 50 euros, VAT excluded, can be modified. <\/li>\n<li>The procedure to urge debt recovery is more flexible. Up until the change, the creditor could only assert a judicial claim or make a request before a notary about the debt payment. The new measure permits using any other evidence clearly proving the claim to the debtor.<\/li>\n<li>The term to recover VAT since the credit is declared uncollectible is extended to 6 months. In this case, a one-year period must elapse since the VAT accrual without obtaining its total or partial payment (a six-month period will be required if the entrepreneur&#8217;s professional turnover for the preceding year does not exceed 6,010,121.04 euros); or from the maturity term in installment transactions. After that term, the recovery of VAT will be possible for six months and not three as it was up until now. <\/li>\n<li>It is important to mention that this last measure includes a transitional system so that the new 6-month term applies to taxpayers whose term to modify the tax base was not time-barred when the Budget Law came into effect on January 1, 2023. Hence, it is time to review whether companies are still on time to recover VAT for bad debts that had been given up.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>In times of economic crisis, collecting bad debts can become quite a feat. Conscious of this, Spanish tax regulations provide for a mechanism to modify the VAT taxable base, allowing a company to avoid financial hardship when it must pay VAT on a credit that is completely or partially uncollectible. The Spanish Budget Law for [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":21349,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1337,1340],"tags":[1359,1372],"class_list":["post-21353","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-vat","tag-fiscalidad","tag-fiscalidad-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>New Spanish tax measures to recover VAT of bad debts - PBS.ES<\/title>\n<meta name=\"description\" content=\"In times of economic crisis, collecting bad debts can become quite a feat. Conscious of this, Spanish tax regulations provide for a mechanism to modify\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbs.es\/en\/spanish-tax-recover-vat-of-bad-debts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Spanish tax measures to recover VAT of bad debts - PBS.ES\" \/>\n<meta property=\"og:description\" content=\"In times of economic crisis, collecting bad debts can become quite a feat. Conscious of this, Spanish tax regulations provide for a mechanism to modify\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbs.es\/en\/spanish-tax-recover-vat-of-bad-debts\/\" \/>\n<meta property=\"og:site_name\" content=\"PBS.ES\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-30T16:04:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.pbs.es\/wp-content\/uploads\/2023\/01\/iva-clientes-morosos.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Professional BookKeeping Services S.L.\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@PBS_WSolutions\" \/>\n<meta name=\"twitter:site\" content=\"@PBS_WSolutions\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Professional BookKeeping Services S.L.\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"New Spanish tax measures to recover VAT of bad debts - PBS.ES","description":"In times of economic crisis, collecting bad debts can become quite a feat. 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