Article 30 - Bad Debts

A. If the Consideration for a Supply is not paid in part or in full, the Tax amount may be adjusted in accordance with the following conditions:

1. The Taxable Person shall prove that he has taken all necessary measures to collect the debt.
2. The debt must be written off in the records of the Taxable Person as a Bad Debt, in whole or in part.
3. The debt must not have been collected for a period of twelve months or more, with the exception of non-payment due to bankruptcy.

B. The Customer shall reduce the recoverable Input Tax in the Tax Period in which the Tax was adjusted in respect of the Taxable Person’s Bad Debt in accordance with Paragraph A of this Article.

C. Where the debt is collected in whole or in part at a later date, the Net Tax shall be adjusted within the Tax Period during which during which the debt is collected.