9 September 2026 · Conditions
The Four Conditions to Claim
To claim VAT bad debt relief you must satisfy all four conditions: (1) the goods or services were supplied and output VAT was accounted for and paid; (2) the consideration has been written off in full or part as a bad debt in your accounts; (3) more than six months have passed since the date of supply; and (4) you have notified the customer of the amount written off. Missing any one means the claim fails.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Supply and write-off
The accounting must be right.
- Output VAT accounted for and paid.
- Invoice reported in a filed return.
- Debt written off in the accounts.
- Full or partial write-off both count.
Time and notice
Timing and the customer notice.
- More than 6 months since the supply.
- Notify the customer of the amount.
- Keep proof of notification.
- All four must be met together.
Related guides
Frequently Asked Questions
For checking you qualify.
How many conditions are there?
Four, and all must be met: output VAT paid, debt written off, six months passed, and customer notified.
Does a partial write-off count?
Yes. The consideration can be written off in full or in part.
What starts the six months?
The date of supply on the original invoice.
Can Exiloz verify the conditions?
Yes. We check each condition before you claim.
Do you meet all four?
Exiloz checks your unpaid invoices against all four conditions.