Module 220 min2160 wordsFree — no account
Unpaid invoices: recovering VAT through insolvency proceedings and fruitless enforcement
The module’s worked examples, then cases to attempt before revealing their solution · 3 sections · 404 words · 4 min
Worked example
The empty bank account
A print shop is owed €3,660 by a customer, of which €660 is VAT. It obtains an enforceable title and garnishes the debtor's account at the bank. The bailiff's report states that the bank holds no debts owed to the customer that can be attached: under paragraph 12, letter a), the enforcement is fruitless. From the date of the report the print shop can issue a credit note for €660 of tax.
Worked example
A dividend two years on
A supplier reversed €2,200 of VAT on a €12,200 claim against a customer in compulsory administrative liquidation. Two years later the commissioner pays it a €2,440 dividend. Extracting the tax: 2,440 ÷ 1.22 = €2,000 net and €440 of tax. The supplier issues an upward adjustment for €440 of VAT and pays it over in its settlement.
Practical case
Roberto's customer and the composition
In February 2026 Roberto delivers materials to a customer for €5,000 plus VAT at 22%, invoices and records the transaction; the customer deducts the tax in full. The customer does not pay, and on 15 June 2026 the court issues the decree admitting it to a composition with creditors, on an application filed in April. In September 2027 Roberto receives €1,830 from the proceedings in partial settlement of his claim. From what date can he issue the credit note, and for how much tax? Must the customer record the adjustment? What must Roberto do in September 2027, and for how much tax?
Hint: Look in paragraph 10-bis for the date that counts in a composition with creditors, then work out the invoice's VAT. For the partial recovery, extract the tax at the standard rate.
Show the solution
In a composition with creditors the debtor counts as subject to the procedure from the date of the admission decree, 15 June 2026, not from the April application; the proceedings opened after 26 May 2021, so the current wording applies. Invoice tax: 5,000 × 22% = €1,100; the credit note, issued from 15 June 2026, recovers €1,100. The customer does not record the adjustment: paragraph 5 lifts the obligation for letter a) insolvency proceedings. The September 2027 payment triggers paragraph 5-bis: 1,830 ÷ 1.22 = €1,500 net and €330 of tax. Roberto issues an upward adjustment for €330 of VAT and pays it over in his settlement.
Answer: Note from 15 June 2026 for €1,100; the customer does not record it; in September 2027 an upward adjustment of €330
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