Finance Bill 2026 Extends VAT Bad Debt Refund Period, Impacting Taxpayer Cashflow

• The Finance Bill, 2026 increases the VAT bad debt refund application period from 2 to 3 years.
• This reverses the Finance Act, 2025, which had reduced the period from 3 to 2 years.
• Taxpayers must now wait an extra year before applying for VAT refunds on bad debts.
• The change may negatively impact taxpayers’ cashflow.

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.

---

---