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.