Tax and Customs Authority
Tax Management Area - VAT
Circular-Letter No. 30161/2014, of 8 July 2014
Clarifying the legal framework that applies to the recovery of Value Added Tax (“VAT”) regarding doubtful and irrecoverable debts, arising from the changes and amendments introduced by the 2013 and 2014 State Budget Laws.
This Circular Letter clarifies that, where the insolvency is declared with a limited nature, VAT relating to claims over the insolvent person may be deducted regardless of whether the creditor intervened in the process or not.