FTA releases VAT Clarification on Adjustment on Account of Bad Debt Relief

UAE’s Federal Tax Authority (FTA) has published a VAT public Clarification on the adjustment on account of bad debt relief.

This Public clarification discusses the conditions which must be met in order to benefit from the Bad Debt relief scheme. 

In order to benefit from the Bad Debt relief scheme, the following four conditions must be met:

a. The goods and services should have been supplied and VAT on the supply should have been charged and accounted for;

b. The consideration for the supply should have been written off in full or in part as a bad debt in the accounts of the supplier;

c. More than six months should have passed from the date of the supply;

d. The supplier should have notified the customer of the amount of consideration for the supply that has been written off.

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