Article 64 outlines the provisions for adjusting Value Added Tax (VAT) due to bad debts. A registered supplier may reduce their Output Tax for a current tax period to correct tax paid in a previous period if specific conditions are met. These include the supply being made and tax paid, the consideration being written off as a bad debt, a period of over six months passing since the supply date, and the recipient being formally notified. Correspondingly, the recipient must reduce their recoverable Input Tax for the current period if they have not paid the consideration for over six months and have been notified by the supplier.
Title 7 - Calculation of Due Tax
Chapter 4 - Adjustment of Tax after the Supply Date
Article 64 Adjustment for Bad Debts
Continue Reading
Access Full Content
You're viewing a preview of this document. Please log in to unlock the complete content, annotations, and research tools.
Click here to view details of the free plan and the subscriptions we offer.