Commentary

BB/27A/03 VAT—changes to VAT Bad Debt Relief scheme

Part V16 Forms and other HMRC material

BB/27A/03 VAT—changes to VAT Bad Debt Relief scheme

BB/27A/03 VAT—changes to VAT Bad Debt Relief scheme

Business Brief, Issue 27. 10 December 2003

This Business Brief article explains the changes to the VAT Bad Debt Relief (“VAT BDR”) scheme announced in the Chancellor's pre-Budget report as part of the Government's anti-avoidance measures.

Background

VAT BDR is a mechanism by which VAT registered businesses can recover from Customs some or all of the VAT they have accounted for on supplies where their customers have failed to pay them.

One of the conditions of the scheme is that, if claimants subsequently receive payment from their customers, a corresponding amount of the relief claimed must

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