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A company seeks guidance on recovering VAT following a court ruling that rescinds transactions carried out with a company in insolvency proceedings. The DGT rules that, if transactions are voided due to challenge within insolvency proceedings, the rectification must be made in the tax return for the period in which the quotas were originally declared.
This ruling clarifies the specific tax period in which companies must adjust their VAT returns when transactions are rescinded due to insolvency challenges, preventing errors in tax reporting.
The tax team reviews your specific situation.
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