How to adjust the VAT on old debts to suppliers

What is it for?

When a supplier invoice stays unpaid for a long time, the VAT you deducted when you recorded it remains deducted. The Old Supplier Balances for VAT Regularization list shows the debts to suppliers that have been open for more than 12 months and, for each one, the associated deductible VAT: the part of the VAT that corresponds to what is still unpaid. It lets the certified accountant see what there is to assess.

The list only measures and identifies. It posts nothing, does not correct the VAT and does not prepare any field of the return. The adjustment, if the law requires it, is decided and posted separately.

When to use it?

• At the end of the year or of the VAT period, to get the list of debts to suppliers older than 12 months and the VAT attached to them.
• After recording the supplier invoices and paying those due, to see what is left unsettled.
• Do not use it as proof that the VAT has to be adjusted: the 12-month period is the product's default value and has not been confirmed. Pending validation by a certified accountant: the period, the legal basis and how to adjust the deductible VAT on debts to suppliers open for a long time.

Where to find it?

The list has no menu entry of its own for the Accountant. It opens from the VAT page:

Accounting › Declare › VAT › What is there to do with the VAT?, and in Supporting lists, Old supplier debts (VAT).

Before you start

• Your profile is Accountant. With it you can do all the steps in this article, including exporting to PDF (tested with the Accountant profile).
• The supplier invoices are confirmed and the payments recorded: the list only sees what is posted in Odoo.
• The example is Empresa Demonstração, Lda. The figures in this article are those of today's demo and change with the data: every invoice, payment or note you post changes the totals and the associated VAT. Always check your own figures on screen. The demo has no debts to suppliers older than 12 months in 2026 (the 2025 fiscal year is closed), so the example looks at 2027 and uses two invoices from January and February 2026 created for this article (plus the other debts the demo already had, which are also included): FTF/2026/00046 (Energia Norte, SA, €1,000.00 + 23 % = €1,230.00, due on 19/02/2026, unpaid) and FTF/2026/00047 (Fornecedor Teste Dois, SA, €500.00 + 23 % = €615.00, due on 05/03/2026, with €300.00 already paid).

How to use it

1. Open Accounting › Declare › VAT › What is there to do with the VAT? and, in Supporting lists, choose Old supplier debts (VAT).
2. The report opens on the year 2026 (01/01/2026 – 31/12/2026). The columns are Line, Document, Due, Old balance unpaid and Associated deductible VAT. In 2026 it only shows Total €0.00, because no debt is yet more than 12 months past due at 31/12/2026.
3. To see the following year, choose 2027 in the period list (Month, Quarter, the arrows and More filters, with the From and until dates, also work). The list groups by Partner. In the example, in alphabetical order: Cloud Services Inc. -€3,596.87 (3 documents), Energia Norte, SA -€1,230.00 with Associated deductible VAT €230.00, Fornecedor Teste Dois, SA -€315.00 with €58.90, Prestador sem país (exemplo) -€225.00, Rui Matos -€600.00, No partner -€47,187.10 and the Total -€53,153.97 with €288.90.
4. To see the documents, click the partner's arrow, or More filters and tick Unfold all. Each line shows the document number (for example FTF/2026/00047), the supplier's reference (FT-2026-118), the Due date (05/03/2026), the balance still unpaid and the VAT attached to it.
5. Check the VAT on each document: it is the document's VAT multiplied by the share still unpaid. On FTF/2026/00047: €615.00 with €115.00 of VAT, €300.00 paid, €315.00 unpaid → 315.00 × 115.00 ÷ 615.00 = €58.90. On FTF/2026/00046, wholly unpaid, the associated VAT is the document's VAT: €230.00.
6. To keep it, click Export PDF (it generates Empresa_Demonstracao_Lda_Pendentes_Antigos_a_Fornecedores_Regularizacao_de_IVA_2027-01-01_2027-12-31.pdf) or open Export. Save options saves the filters chosen and Reset goes back to the defaults.
7. The other fields in More filters are common to all fiscaldoo reports: Compare with previous period, Bucket limits (days), Days per period, Periods, Companies, Group accounts by hierarchy, Show amounts in (Units, Thousands or Millions) and Journals. The 12-month period only changes with Days counted from and with the until date; Include drafts changes what is included (see the notes below). The rest were not tried for this article.

Expected result

• The list shows, per partner and per document, what has been unpaid for more than 12 months and the VAT attached to it. Each Associated deductible VAT is proportional to what is still unpaid.
• The PDF repeats the lines per partner and the total (checked on 01/11/2026: -€53,153.97 and €288.90, 1 page). It does not include the unfolded documents: for the documents, use the screen.
• The list creates no journal entries. Each example invoice's entry already exists and was checked in the ledger. On FTF/2026/00046: debit to 6241 Eletricidade €1,000.00, debit to 2432 IVA - Dedutível €230.00 and credit to 2211 Fornecedores gerais €1,230.00. The VAT adjustment, if any, is a separate entry. Pending validation by a certified accountant: the accounts and the period in which the adjustment is made.

Important notes

• The 12-month period cannot be changed on screen. A debt goes into the list when the due date plus 12 months is before the end date of the chosen period. With the end date 31/12/2027, an invoice due on 19/02/2026 is included; with 31/12/2026 it is not. In More filters, Days counted from chooses whether the 12 months count from the Due date (default) or from the document date.
• The list does not pick out supplier invoices alone. It sees all amounts payable to partners and, under No partner, the entries without a partner. In the 2027 example, that includes the payroll from June to September 2026 and the VAT settlement for June and July 2026 (€47,187.10 in total, with deductible VAT €0.00). Check each line before treating it as a debt to a supplier.
• The deductible VAT is €0.00 when the document has no VAT or the VAT is self-assessed. That is the case for Cloud Services Inc. (three documents: two in dollars, FTF/2026/00039 and 00040, €2,096.87 in total, and FTF/2026/00049 with €1,500.00 unpaid), Prestador sem país (exemplo) (FTF/2026/00050, €225.00) and Rui Matos (€600.00, no VAT).
• Only debts are included. Credit notes and advances to suppliers (balance in your favour) are left out.
• Drafts. Unconfirmed documents are only included if you tick Include drafts in More filters.
• Link with VAT: this article does not change the VAT settlement or the periodic VAT return.

Common problems

The list only shows “Total €0.00”

• Symptom: you opened the report and only see the Total line at €0.00.
• Cause: no debt to suppliers has a due date more than 12 months before the end date of the period, which by default is the current year.
• What to do: choose a later period, or adjust the until date in More filters, and check that the supplier has the invoice confirmed and unpaid.

The associated VAT is €0.00 on a debt that has VAT

• Symptom: the Old balance unpaid appears and the Associated deductible VAT is €0.00.
• Cause: the entry's VAT is self-assessed (it cancels itself out) or the document has no VAT.
• What to do: open the document by its number and look at the tax lines.