Do you know VAT Paid on unpaid customers which is outstanding for more than 6 months could be adjusted in the subsequent VAT return. There is a specific tab called Adjustment tab where you can adjust the output tax paid on accounts receivables which are outstanding for more than 6 months from the due date. There are specific conditions associated with these adjustments. The adjustments could be done after fulfilling the conditions mentioned in article 64 of Federal Decree-Law No. (8) of 2017 on Value Added Tax. The conditions as per Article 64 are:
- Consideration has been written off in full or part as a bad debt.
- Notification or intimation has to be given to the customer that this amount of consideration has been written off.
- More than six (6) months has passed from the due date of the supply.
- Goods and Services have been supplied and the Tax has been charged and paid.
Source GCCFintax
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