Revenue e-brief 55/2014: Adjustment for input VAT on unpaid invoices - S62A VATCA 2010
Many of you will be aware of this from the announcement made in July 2014 and the addition it made to the bad debt relief provisions already in place which allowed the supplier to make an appropriate adjustment for VAT declared on unpaid invoices.
Revenue's E-brief announced extensions to this provision whereby the person in receipt of the supply has to make an adjustment for VAT deducted against a supply where that supply has not been paid. This adjustment has to be made within 6 months of the end of the taxable period the supply was accounted for and became effective for supplies received from January 2014.
