Even if a self-employed person registers in the Special engineering email list Regime of the Cash Criterion for VAT, at the end of the year following the operation, he or she must declare and pay the VAT on unpaid invoices. Once this accrual has passed, if the invoice is finally collected, it will not generate any annotation or declaration (since it was already done on December 31 of the year immediately following the invoice issue). And if collection is not considered possible, there is a process to recover the VAT on these unpaid invoices.
It is important that the debts are being claimed in court. The debt collection must be claimed in court, by serving a notarial request. Normally, this process is worthwhile for invoices of a considerable amount.
The VAT Law establishes the requirements and deadlines that allow for the recovery of at least the amounts charged that were declared at the time and whose amount has not been collected from these outstanding invoices. The process is carried out through the modification of the taxable base by issuing corrective invoices, within the established requirements and deadlines. These will be different depending on the debtor's situation.
