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Over the course of a year, about £20,000 of sales by a retail shop were found to have been paid for by the fraudulent use of a number of credit or debit cards. The business’s bankers have now reclaimed this amount from the trader
Our clients trade as a retail shop run by a partnership. During the past year a number of sales totalling about £20 000 were found to have been paid for by the fraudulent use of credit/debit cards. Our clients have declared and paid over the appropriate VAT on these sales.
The business’s bankers have now taken back from the retailer via their PDQ (“process data quickly”) account the cash originally credited to their bank account in respect of the fraudulent transactions.
The issues arising are as follows.
- Because the business has effectively not been paid for the goods that it has “sold” is the appropriate action to claim VAT bad debt relief? If this is the correct treatment must the clients wait six months before they can claim the relief?
- If VAT bad debt relief...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
