Bad debt reduction? For whom? After what time?
Bad debt reduction gives the VAT taxpayer chance to reclaim tax deduced for unpaid invoices. Till the end of 2018, the deadline amounted to 150 days. After recent amendment, the taxpayer may claim VAT refund faster, even after 3 months. The deadline of 90 days also applies to the debtor who after 3 months will be obliged to correct VAT charged on unpaid invoices. Thanks to this change, entrepreneurs may now reclaim tax on bad debts faster. Creditors have the right to apply bad debt reductions earlier and may earlier reduce the VAT due.