Page 25 - F6 Slide - VAT Part 5 - Lecture Day 5

Adjustments: Irrecoverable Debts

Vendor who does not pay his creditors within 12 months

Vendor (invoice basis) – claimed input tax (eg. Purchases)

Full consideration not paid within 12 months from end of tax

period deduction was claimed

Account for output tax of 14/114 x unpaid consideration