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A light and gas supplier inquired whether its non-payment claim procedure was sufficient to adjust the VAT taxable base for bad debts. The Directorate General for Taxes (DGT) ruled that since the law does not specify particular methods of proof, any means admissible in law that allows for the verification of the claim may be used.
Businesses can use various forms of evidence to justify VAT deductions for bad debts, provided they can prove the collection attempt was made.
The tax team reviews your specific situation.
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