VAT on Bad Debts

What happens when our customers don’t pay and we have to consider them as bad debts? We have already paid VAT from our own pocket but did not receive it from the customer. Can we do anything?

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Asim

27/01/2020 12:20:07
Replies
CA Vibha Malik27/01/2020 16:39:16

yes, you claim it back VAT which you have paid on your baddebts but you need to prove to FTA that there is actual baddebts and you are not going to receive any money from the customer. The documentary proof is necessary in these cases, even confirmation on email is also sufficient.

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