Page 163 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

Adjustments: Irrecoverable debts

E.g. sales

Accounted for output tax in respect of a taxable supply

All/part of the consideration becomes irrecoverable

Claim input tax deduction of amount written off

No adjustment needed if

zero-rated supply

If debt recovered again – pay output tax on amount recovered