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20 paź 2020 · On 15 October 2020, the Court of Justice of the European Union delivered a judgment in Case C-335/19: E. Sp. z o.o. Sp. k. vs Polish Supreme Administrative Court, in which it assessed compatibility of the Polish legislation on the VAT bad-debt relief with EU law.
- Tax Knowledge Management Team
At KPMG our tax advisors can provide comprehensive and...
- Tax Knowledge Management Team
On 15 October 2020, the European Court of Justice (“ECJ” or “Court”) passed a judgment in case C‑335/19 E. Sp. z o.o. Sp. k. vs the Minister of Finance concerning compatibility of the Polish bad debt relief regulations with Directive 2006/112/EC (“Directive”).
When debts cannot be recovered, you may apply for bad debt relief to recover GST charged but unpaid by your customers. Should your customer subsequently pay you, you must repay the relief claimed. On this page: Bad Debts. Qualifying for Bad Debt Relief. Claiming Bad Debt Relief.
Given VAT/GST is levied on gross revenue, any irreversible VAT/GST liabilities arising from bad debts could have a crippling impact on businesses. From a policy perspective, there are really two main schools of thought around the treatment of bad debts.
How to benefit from relief for bad debts? Creditors will now have the option to reduce their income or increase any loss by the value of outstanding claims, but this will not be obligatory for them.
3 maj 2024 · The European Court of Justice held in its Feb. 29 judgment in Remi that EU member states are obliged to provide value-added tax payers with the option of taking advantage of bad debt relief, and that an entitlement to a reduction in the taxable amount for VAT in case of non-payments has direct effect.
a debt (or part of a debt) must be both bad and written off before any person can claim an income tax deduction or a deduction from GST output tax (assuming that other legislative requirements in the GST Act and the Income Tax Act are also satisfied).
