Reclaim irrecoverable VAT in the Netherlands

Since January 1, 2017, the Dutch government granted its taxpayers the opportunity to claim VAT from non-paying customers. A year passed the final payment deadline, an unpaid VAT charge becomes irrecoverable. Therefore, Dutch taxpayers can now declare this irrecoverable VAT in their VAT declaration in order to reclaim the otherwise lost income. But when exactly should this VAT by reclaimed?

VAT declaration 2017

In the final VAT declaration of 2017, you can reclaim VAT charges which irreversibly became irrecoverable in the course of 2017. The VAT to recover should be claimed over the period since the charge was rendered irrecoverable. Several reasons may cause the unfortunate VAT status. For example, you may not recover the bankruptcy debt settlement you were entitled to as a creditor. An unpaid invoice can also cause VAT to become irrecoverable when you officially freed your customer of the invoice charges. If, however, your customer pays the invoice anyhow, the VAT loses its irrecoverable status.

VAT declaration 2018

Yet, not every unpaid VAT charge with a final payment due before 2017 turns into irrecoverable VAT. In the following situations, the outstanding demands are irrecoverable starting January 1, 2018:


  • The bankruptcy of your client is not finalized, even though you probably won’t receive an indemnity;
  • You customer ignores every payment reminder for a negligible charge that actually is not worth the collection procedure;
  • The customer does not agree with the invoice charges and you haven’t decided upon a new plan of action;
  • You can’t bill your customer, since he is irretraceable;
  • You already send the invoice to your customer, even though you didn’t completely execute the services you charged VAT for.


Therefore, the outstanding VAT demands are to be reclaimed in the first VAT declaration of 2018.


Do you have any questions or wish for assistance in VAT compliance? You can always contact us. DTS is pleased to be at your service.

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