Proposed VAT Claw-Back Amendment for Recovered Debts in South Africa’s National Budget Address

• Recipient of an account receivable can deduct VAT on amounts written off as irrecoverable
• VAT Act does not currently provide for claw-back of VAT on amounts subsequently recovered
• Proposed amendments to provide for claw-back of VAT on recovered amounts
• Details about proposed VAT changes in South Africa delivered by Finance Minister Enoch Godongwana on 21 February 2024

Source: assets.kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.