{"id":2564,"date":"2024-06-15T13:20:00","date_gmt":"2024-06-15T13:20:00","guid":{"rendered":"https:\/\/www.rosarioduarte.pt\/recuperacao-do-iva-de-creditos-incobraveis\/"},"modified":"2026-03-31T12:11:26","modified_gmt":"2026-03-31T12:11:26","slug":"recuperacao-do-iva-de-creditos-incobraveis","status":"publish","type":"post","link":"https:\/\/www.rosarioduarte.pt\/en\/recuperacao-do-iva-de-creditos-incobraveis\/","title":{"rendered":"VAT Recovery on Bad Debts"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><strong>A \u201cdouble\u2011edged sword\u201d<\/strong><\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p><br>The 2013 reform simplified VAT recovery on invoices issued but not collected. However, deadlines and formalities are strict: without timely follow\u2011up, companies lose the right to reclaim VAT.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>First step: internal control<\/strong><\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p><br>Businesses must implement robust maturity controls. Accounting and collection teams should:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Monitor customer accounts regularly.<\/li>\n\n\n\n<li>Flag overdue invoices early.<\/li>\n\n\n\n<li>Isolate doubtful debts in the accounts.<\/li>\n\n\n\n<li>Keep evidence of collection efforts (emails, registered letters, enforcement actions), which is essential for recovery.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>When is a debt considered bad?<\/strong><\/h3>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Credits in arrears (mora)<\/strong> are treated as uncollectible when:<ul><li>More than 12 months have passed since due date, with objective proof of impairment and collection attempts; or<\/li><\/ul>\n<ul class=\"wp-block-list\">\n<li>More than 6 months have passed, if the amount is \u2264 \u20ac750 (VAT included) and the debtor is a private individual or an exempt entity.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Insolvency bad debts<\/strong> arise when the customer is declared insolvent and the final distribution confirms definitive non\u2011payment. This route only applies if insolvency occurs <em>before<\/em> the credit reaches 12 months in arrears.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Recovery procedure<\/strong><\/h3>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Credits in arrears<\/strong> \u2013 Within 6 months after the debt becomes uncollectible, the company must request prior authorization from the Tax Authority (AT), supported by a Statutory Auditor\u2019s certification or, for recovery \u2264 \u20ac10,000, an independent Certified Accountant. The AT has 4 months to respond:<ul><li>Silence on invoices &lt; \u20ac150,000 = request deemed approved.<\/li><\/ul>\n<ul class=\"wp-block-list\">\n<li>Silence on invoices \u2265 \u20ac150,000 = request deemed rejected.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Insolvency bad debts<\/strong> \u2013 VAT may be recovered within two years from 1 January of the following year, without prior AT authorization, based on the insolvency certificate and court judgment.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why legal support matters<\/strong><\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p><br>Given the technical complexity and many \u201cgrey areas\u201d, regular follow\u2011up by certified accountants and lawyers is crucial to avoid losing VAT solely due to procedural errors.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"379\" src=\"https:\/\/www.rosarioduarte.pt\/files\/uploads\/2020\/06\/recuperacao-do-iva.jpg\" alt=\"Recupera\u00e7\u00e3o do IVA\" class=\"wp-image-1296\" srcset=\"https:\/\/www.rosarioduarte.pt\/files\/uploads\/2020\/06\/recuperacao-do-iva.jpg 1200w, https:\/\/www.rosarioduarte.pt\/files\/uploads\/2020\/06\/recuperacao-do-iva-300x95.jpg 300w, https:\/\/www.rosarioduarte.pt\/files\/uploads\/2020\/06\/recuperacao-do-iva-768x243.jpg 768w, https:\/\/www.rosarioduarte.pt\/files\/uploads\/2020\/06\/recuperacao-do-iva-1024x323.jpg 1024w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<p class=\"ql-heading\">Rita Duarte | <a class=\"ql-link\" href=\"mailto:rduarte@rosarioduarte.pt\" target=\"_blank\" rel=\"noopener noreferrer\">rduarte@rosarioduarte.pt<\/a><\/p>\n\n\n\n<p><a class=\"btn gray\" href=\"http:\/\/eepurl.com\/gyHAu1\" target=\"_blank\" rel=\"noopener\">Sign up for our Newsletter<\/a><br>\u00a0<\/p>\n\n\n\n<h5 class=\"wp-block-heading ql-heading\"><strong>Contact us and\/or book a meeting <a href=\"https:\/\/www.rosarioduarte.pt\/en\/contacts\/\">here<\/a>.<\/strong><\/h5>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><\/h6>\n","protected":false},"excerpt":{"rendered":"<p>A \u201cdouble\u2011edged sword\u201d The 2013 reform simplified VAT recovery on invoices issued but not collected. [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2564","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.rosarioduarte.pt\/en\/wp-json\/wp\/v2\/posts\/2564","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rosarioduarte.pt\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rosarioduarte.pt\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rosarioduarte.pt\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rosarioduarte.pt\/en\/wp-json\/wp\/v2\/comments?post=2564"}],"version-history":[{"count":2,"href":"https:\/\/www.rosarioduarte.pt\/en\/wp-json\/wp\/v2\/posts\/2564\/revisions"}],"predecessor-version":[{"id":2571,"href":"https:\/\/www.rosarioduarte.pt\/en\/wp-json\/wp\/v2\/posts\/2564\/revisions\/2571"}],"wp:attachment":[{"href":"https:\/\/www.rosarioduarte.pt\/en\/wp-json\/wp\/v2\/media?parent=2564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rosarioduarte.pt\/en\/wp-json\/wp\/v2\/categories?post=2564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rosarioduarte.pt\/en\/wp-json\/wp\/v2\/tags?post=2564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}