Debt Collection. VAT Recovery

It can recover the VAT charged on unpaid invoices?

Yes, there is expected to recover in the Law 37/92 as amended procedure in fact is provided for by the legislation to avoid the financial costs of not having the money paid from the Treasury as the relevant statement.

Since CAB-LEGAL offer a comprehensive VAT recovery by integrating the following steps:

  1. Legal claim the charges pending payment
  2. Development of corrective invoice
  3. Development of the application of VAT refund
  4. Control of the established time limits to be submitted invoices as they are fulfilling those periods
  5. Submission to the Tax Office of the required documentation.
  6. Communication to the debtor on the corrective invoices submitted
  7. Communication Customer all documents submitted for internal accounting

What are the requirements for changing the tax base?
The tax base can be reduced when the credits for contributions inputs of taxable transactions are partly or wholly bad, considering as such when credit meets the following conditions:

1st. That six months udesde the chargeable impact without having obtained the recovery of all or part of the credit derivative thereof or 1 year when the holder of the credit is a businessman or professional whose turnover in the calendar year has elapsed immediately preceding exceeded 6,010,121.04 euros.

For operations within 6 months, if, within one year start counting from the expiry or unpaid installments, not from the accrual to output tax. Forward transactions with deferred price or those in which it has been agreed that its consideration be enforced in one or successive payments are considered only, respectively, provided that the period between the accrual of output tax and the expiration of the last or only payment exceeds one year.

2nd. That fact has been reflected in the records books required for this tax.

3rd. The recipient operation acting on the status of employer or professional, or, alternatively, that the taxable amount, excluding VAT, exceeds 300 euros.

4th. That the taxpayer has urged his recovery through court claims against the debtor or by a Notary Public to it, even in the case of credit secured by public bodies. In operations that are addressed to public bodies, legal claim or Notary Public shall be replaced by a certificate issued by the competent body.

Iva Recovery Procedure

If the above requirements are met, the change must be made within the following to the end of the period of one year (or, in the case of SMEs, the period of six months) from the time of maturity of the operation three months or the expiration or unpaid in the case of forward transactions deadlines.

From the date it was issued the amendment bill, we are given within 1 month to inform the Treasury through a brief letter in which the original invoices and their respective corrective join, as well as proof of having filed the complaint. Likewise, you should contact the debtor issuing bills of amendment regulations established form.

There shall be no modification of the tax base when you try to credit them to enjoy security, are secured by credit institutions or mutual guarantee, or covered by an insurance credit or surety on the guaranteed portion, secured or insured, and in the case of loans between related persons or entities for VAT purposes, and those that relate to operations whose target is not set in Spain.

Where a writ of insolvency for claims relating to fees passed on by Operations that accrual occurs prior to that order (insolvency claims), nor will proceed modifying the tax base after this car. In this case, only the taxable amount may be reduced as provided in Article 80.Tres Tax Act added value ..

Regulations: Article 80, paragraphs four and five in the Law 37/1992 of 28 December, of the Value Added Tax. Wording of Law 16/2012, of 27 December, amending various taxation measures aimed at consolidating public finances and boost economic activity (BOE of 28) are taken.