Can we recover the VAT already paid to IRD for cancelled invoice or unpaid invoices

asked Aug 29, 2017 in VAT by anonymous
We have issued a VAT invoice and paid the relevant VAT as well. How to recover the paid VAT in following circumstances

1. Invoice gets cancelled since the contract gets terminate
2. Client has not paid for the invoice and record as bad debt

1 Answer

0 votes
answered Aug 29, 2017 by Sajith (260 points)
1. If the invoice gets cancelled, then you need to create a credit note, so it is automatically adjusted from the credit note period.

2. Vat relating to bad debt is deductible from current payable.