The UAE Federal Tax Authority (FTA) has issued Public Clarification VATP024 to clarify an adjustment on account of bad debt relief for VAT purposes.
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Issue
Where a VAT registered supplier supplies goods or services to its customers but is not paid (wholly or partially) within a specified period, such supplier may be able to adjust the VAT on the bad debts, subject to meeting the conditions prescribed in Article 64(1)1 of the Federal Decree Law No. 8 of 2017 on Value Added Tax ('Decree…