UAE VAT bad debt relief calculator
You can reclaim the VAT you paid on an unpaid invoice once more than 6 months have passed since the date of supply, the debt is written off in your accounts and you have notified the customer. The relief is 5/105 of the unpaid, VAT-inclusive amount, claimed as an adjustment on your VAT return.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
- Relief available now
- Yes
- Unpaid amount
- AED 15,750.00
- VAT you can reclaim
- AED 750.00
- Earliest claim date
- 16 July 2026
Claim it as an adjustment in box 1 of your next VAT return. If the customer later pays, the VAT must be paid back.
Results are estimates for general information, not tailored advice.
VAT reclaimable on unpaid invoices
All conditions met (6 months passed, written off, customer notified).
| Unpaid incl. VAT | VAT you can reclaim |
|---|---|
| AED 1,050 | AED 50.00 |
| AED 10,500 | AED 500.00 |
| AED 52,500 | AED 2,500.00 |
| AED 105,000 | AED 5,000.00 |
Relief is the VAT fraction (5/105) of the unpaid, VAT-inclusive amount.
The conditions
All conditions must be met at the time you claim:
- You supplied goods or services and accounted for the VAT on them
- All or part of the consideration has been written off as a bad debt in your accounts
- More than 6 months have passed since the date of supply
- You have notified the customer of the amount written off
If the customer pays later
If you later receive any payment, you must account for the VAT on that payment again in the return for the period you receive it. Keep the write-off journal and the notification letter as evidence.
Legal basis
We review this calculator whenever the FTA or Ministry of Finance issues a new decision or clarification.
Frequently asked questions
How much VAT can I reclaim on a bad debt?
5/105 of the unpaid, VAT-inclusive amount. For an unpaid AED 10,500 invoice, that is AED 500.
Where do I claim bad debt relief on the VAT return?
As a negative adjustment in box 1 for the emirate where the original sale was reported.
VAT registration and returns
Our FTA registered accountants register you, file every return on time and fix errors before the FTA finds them, for a fixed monthly fee.