BCMS Limited
243/1 Constitution Street
Mosta, MST 9052

T: +356 2142-1111
M: +356 9947-5566
F: +356 2141-7118
E: rkg@bcmsltd.com

VAT Guidelines on for bad debt relief

vat_calcThe VAT Department has issued guidelines on how a taxpayer can claim VAT Relief on bad debts.

In summary the actual supplier registered under Article 10 of the VAT Act can claim VAT Relief on a supply for which he/she has not been paid provided various conditions have been satisfied.

These include amongst others:

  • The supply has not been paid for directly or indirectly;
  • A court judgement must have been delivered showing that the debt can never be recovered;
  • Such claim must be notified to the Commissioner within 12 months of the date of the judgement;
  • The VAT on that supply must have been paid already;

The claim must be made by means of a registered letter to the VAT Department.

Feel free to contact us if you feel we can be of help.