Highlights of VAT Public Clarification 024 – Adjustment on Account of Bad Debt Relief


Conditions to claim benefit

  • VAT should have been accounted for and paid on the supply.
  • Consideration for the supply should have been written off.
  • More than 6 months should have been passed from the date of supply.
  • Notification for consideration for the supply which has been written off.
  • The notification can be sent via a letter, email, post, or any other similar communication. An acknowledgement of receipt of notification from the customer is not necessary for the supplier to receive before taking the bad debt adjustment, however, a supplier needs to evidence documentation and/or that best measures were taken to notify the customer.

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