The Spanish Association of Tax Advisors (AEDAF) has published expert guidance on VAT recovery procedures for bad debts, authored by Sergio Pérez Vegas and Jaime Rodríguez Correa from AEDAF's Indirect Tax Expert Group.

The guidance addresses the mechanisms available to businesses for recovering VAT on unpaid invoices, outlining the procedural requirements and compliance obligations under Spanish VAT legislation. The publication forms part of AEDAF's regular commentary series in the financial press, providing practical insights for tax practitioners dealing with bad debt situations.

Spain's VAT system includes specific provisions allowing businesses to recover VAT previously paid on supplies where payment has not been received from customers. The recovery mechanism requires adherence to strict procedural conditions and timing requirements, with documentation obligations that must be satisfied to qualify for the adjustment.

The expert commentary provides clarity on the application of these provisions in practice, addressing common compliance challenges faced by businesses when pursuing VAT recovery on unpaid amounts. This includes guidance on the interaction between bad debt relief and other VAT provisions affecting commercial transactions.