Since January 2017 businesses are able to claim back VAT on bad debts via their periodical VAT return. This is allowed not only when the claims have actually been proven to be uncollectible but also when the debtor has not paid the debt a year after it has become due, whichever comes first. Debtors must pay back the reclaimed VAT if the debt has not been paid after one year. A transitional arrangement is available for debts outstanding at year-end 2016.