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Brankuptcy of your client: what to do?

When your company sends an invoice including VAT to its customer, it acts as a tax collector on behalf of the State: it must include the invoice in its VAT return and pay the VAT within the deadlines set by VAT regulations. Failure to do so may result in administrative sanctions and interests on late payment.

Whether or not the client honours the payment of the invoice has no influence on the matter.

In these times of serious economic crisis, the risk of business failure is greater than ever.

So what should you do if your client goes bankrupt? Can you in this situation claim back the VAT on your receivables ?


The VAT expert's eye

If one of your customers goes bankrupt, you have the right to request VAT refund, provided that you are familiar with the local formalities: do you have to request VAT regularisation to be made as soon as the customer's bankruptcy is declared or only at the closure of the bankruptcy (which can take up to ten years as in Italy)? What documents do you need to send to the tax authorities? What administrative or judicial recourses are available in case of unjustified refusal?

VAT refund is a fundamental right for every company. But exercising this right is sometimes difficult.


Recover your VAT with our Tax Advising Firm

In the event of a customer's bankruptcy, recovering VAT on unpaid invoices can be a complex and challenging process. Our tax advising firm can provide valuable assistance in navigating this process, helping you to recover your VAT efficiently and effectively.

  • Expertise: Our firm has extensive knowledge and experience in dealing with VAT recovery on unpaid invoices, and can provide expert guidance on navigating the process.
  • Efficiency: We can help you recover VAT on unpaid invoices quickly and efficiently, saving you time and resources.
  • Compliance: Our firm can ensure that you are fully compliant with all relevant regulations and procedures, minimizing the risk of errors or penalties.
  • Peace of mind: By working with our firm, you can have the peace of mind that comes with knowing that your VAT recovery is being handled by professionals.

We offer a free video conference to assess your situation and provide you with a tailored solution.