Value Added Tax Act 1994 section 34

Bad debts

Section 34 of Schedule 9ZD deals with how participants in non-UK VAT schemes can claim bad debt relief on supplies treated as made in the United Kingdom.

• Applies to participants in non-UK One Stop Shop schemes who have filed a return with the tax authorities in the administering member state
• Covers situations where the whole or part of the consideration for a UK scheme supply has been written off as a bad debt
• Allows an amendment to a non-UK return to be treated as a formal claim to HMRC for a VAT refund under section 36(2)
• Removes the need for a separate bad debt relief claim to HMRC when the non-UK return has already been amended accordingly