If a customer stops paying you an invoice one year after the accrual of the transaction, you can take steps to recover the VAT charged (if your company’s annual turnover is less than 6,010,121.04 euros, you only have to wait six months to start these steps). In both cases, you have six months to complete them.
However, if your client files for insolvency proceedings before these deadlines expire, you must anticipate the VAT recovery procedures:
- You must issue the corrective invoice within three months of the publication in the BOE of the insolvency order and send it to the debtor (with a copy to the insolvency administrator).
- You will have one month from issuing the corrective invoice to inform the Tax Authorities -using the specific form that appears in their Electronic Headquarters- that you have corrected.
In this regard, the insolvency administrator must notify all creditors of the publication of the insolvency order. However, this procedure may be delayed, with the risk that your company may be unable to rectify in time. Keep this in mind to reduce the risk:
- If you suspect that a client is going to go into insolvency, periodically consult the BOE’s Tablón Edictal Judicial Único (Single Judicial Bulletin Board) (section on “Edictos Judiciales”), where announcements of insolvency proceedings are published.
- On the website https://www.publicidadconcursal.es, you can also check whether a debtor is in insolvency proceedings (although, in practice, the information takes a little longer to appear than in the BOE).
Remember that you can count on Leialta as your consultant to accompany you in the VAT recovery procedures so that you meet all the formal requirements to obtain it.
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