The finance ministry has modified its VAT Implementation decree to follow ECJ and Supreme Tax Court case law to the effect that the purchase and collection of doubtful debts (non-performing loans) is VAT-free in contrast to the purchase of receivables for collection.
The Supreme Tax Court has held that the sale of currently due, but doubtful, debts at their agreed market value and without further recourse to, or obligations towards, the seller is a VAT-free sale of debts, rather than a taxable debt collection.
