Unit 7 Vat : Bad debt Relief claim

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I have my unit 7 skills test tomorrow and am stuck with this. Can someone please tell me when can we reclaim VAT on Bad debts. Is it 6 months from the invoice date (tax point) or 6 months from the date the invoice is due. Thanks <BR><BR>Stella

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Unit 7 Vat : Bad debt Relief claim

    According to the book:-<BR><BR>Bad debt relief is available for debts <BR>Which are MORE than six moths overdue.<BR>(i.e. six months from the due date of payment or six months after date of supply)<BR><BR>Bad debt relief is available for debts:-<BR>When the output VAT has been paid to HMC&E<BR>When the debt has been written off in the suppliers accounts and transferred to a bad debt account.<BR><BR>Hope that helps <BR>Good luck with your skills test.<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Unit 7 Vat : Bad debt Relief claim

    You should also be able to demonstrate that attempts have been made to recover the debt.<BR><BR>Mike<BR>

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