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relief on impairment loss under VAT.

Forums › ACCA Forums › ACCA TX Taxation Forums › relief on impairment loss under VAT.

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by Rita.
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  • August 31, 2015 at 12:16 pm #269274
    hormotee
    Member
    • Topics: 2
    • Replies: 4
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    Mick is a value added tax registered trader who prepares quarterly value added returns to 31 March, 31 July, 31 September and 31 December. Mick’s accounts are prepared annually to 30 September. Mick made a supply of goods amounting to £6000 on September 22 2014 with a due date of payment of 10 October 2014. The customer has defaulted on the payment and Mick has written the debt off in his accounts. He does not use the cash accounting scheme. In which quarterly VAT return may relief for the impaired debt be claimed?

    August 31, 2015 at 1:54 pm #269292
    Rita
    Member
    • Topics: 4
    • Replies: 12
    • ☆

    The due date is 10/10/2014. In order to be able to claim a relief, at least 6 months needs to be elapsed from the due date, so the relief can be claimed after 10/04/2015.

    As he prepares quarterly VAT return, my answer would be 31/07/2015 which is the end of that quarter.

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