Remember that you can recover uncollected VAT
When your company charges VAT, it must include it in the periodic return corresponding to the date on which the transaction was carried out, even if you have not collected it (unless you have opted for the cash criterion, which is not usual).
However, if six months or a year has passed since the date of the transaction without having been paid (or only one year if your company’s turnover exceeds ¤6,010,121.04), you can rectify the invoice issued and cancel the output VAT. In this way you will be able to consider a lower output VAT in your periodic tax return, and recover the amount paid to the tax authorities at the time.
The rectification is only for the purpose of recovering the VAT, and in no case does it imply a waiver of the right to continue claiming the principal.
However, you should be aware that in order for the Inland Revenue not to oppose this and allow you to recover the VAT, your company must comply with certain formal requirements established by law.
If your company has unpaid debts, we will advise you on how to recover uncollected VAT directly from the Inland Revenue.