Before recovering VAT on bad debts one of the first points to consider is whether monies owed to you qualify as a bad debt for VAT purposes.
In order to be considered a bad debt for VAT purposes, the following conditions must apply:
Having covered the conditions we’ll now consider how recovering VAT on bad debts applies to different VAT schemes.
The rest of this article covers recovering VAT on bad debts
- standard accounting for VAT
- cash accounting for VAT
- VAT flat rate scheme
- VAT margin schemes
- FAQs and more information
Click here to read the rest of this article by Richard Baldwyn
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