Commentary by Marcus Ward on the Regency Factors case in the UK.
The case deals with a claim for Bad Debt Relief (BDR) on amounts that were not received after the issue of an invoice.
Regency provided a factoring service to its clients for which it is paid a fee. VAT invoices for those fees were issued to clients when the invoices which are being factored are assigned to Regency for collection. However, Regency did not keep a record of the bad debts, as was required by Law.
In short, Regency had the opportunity to prove its claim for bad debt relief in the FTT… but it failed to do so.
Source: Marcus Ward
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