36 Bad debts
Value Added Tax Act 1994 (1994 c 23) | Legislation

36  Bad debts

(1)     Subsection (2) below applies where—

(a)     a person has supplied goods or services . . . and has accounted for and paid VAT on the supply,

(b)     the whole or any part of the consideration for the supply has been written off in his accounts as a bad debt, and

(c)     a period of 6 months (beginning with the date of the supply) has elapsed.

(2)     Subject to the following provisions of this section and to regulations under it the person shall be entitled, on making a claim to the Commissioners, to a refund of the amount of VAT chargeable by reference to the outstanding amount.

[(3)     In subsection (2) above “the outstanding amount” means—

(a)     if at the time of the claim no part of the consideration written off in the claimant's accounts as a bad debt has been received, an amount equal to the amount of the consideration so written off;

(b)     if at that time any part of the consideration so written off has been received, an amount by

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