6. Bad loans
With effect from January 1, 2023, for its adaptation to community law, some aspects of the procedure to recover VAT from bad debts are modified:
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The modification of the tax base is allowed in the case of bad debts as a result of an insolvency process declared by a court of another Member State to which Regulation (EU) 2015 is applicable /848. The period for the modification will be two months from the end of the equivalent period in the bankruptcy legislation of the Member State for calling creditors.
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In relation to bad debts:
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If the recipient of the unpaid transaction is a final consumer, minimum amount of the taxable base of said transaction is reduced from 300 to 50 euros, VAT excluded.
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It is allowed to replace the judicial claim or notarial requirement prior to the debtor by any other means that reliably proves the claim for collection from said debtor.
- The period to recover VAT is extended from 3 to 6 months from when the credit is declared uncollectible, adding a transitional regime so that they can apply this new term for taxpayers whose modification terms have not expired on January 1, 2023.
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