01
A late invoice is not automatically a claim
The supplier must already have accounted for the output VAT, the debt must normally remain unpaid for six months after the later of the due date and supply date, and the amount must be written off in the VAT records.
- Output VAT previously paid
- Six-month unpaid period
- Bad-debt account
- No sale or valid assignment of the debt
02
Unpaid purchases can create a clawback
A customer that has recovered input VAT but does not pay within the relevant six-month period can be required to repay that input tax. Payment and relief records should therefore be reviewed together.
- Input tax repayment
- Part payments
- Subsequent recovery
- Four-year and six-month claim limit
Primary sources
Tax guidance changes. These official sources were checked on 31 August 2026.
VAT Notice 700/18: bad-debt reliefSending a VAT Return