Is VAT calculated on receivables after the expiration of the limitation period?

Is VAT calculated on receivables after the expiration of the limitation period?



We inform you that according to Article 166.1.3 of the Tax Code, the date of expiration of the limitation period for receivables arising from the supply of goods (works, services) is considered the time of the VAT-taxable transaction. The commencement, suspension, and expiration of the limitation period are regulated by the Civil Code.

According to Article 372 of the Civil Code, a limitation period applies to the right to demand another person to perform or refrain from performing an act. The period established for the protection of a violated right at the request of the affected person is considered the limitation period. The limitation period starts from the day the right to claim arises — that is, from the day the person knew or should have known about the violation of their right.

The limitation period for contractual claims is three years. After the expiration of this period, VAT must be calculated and paid to the budget on such receivables.