English translation published by the Legislation and Legal Opinion Commission. The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.
Value may be adjusted after Supply for cancellation, rejection, reduction, qualifying bad debt or accepted return. A material change increasing VAT creates a mandatory upward adjustment.
Accounts receivable, sales, collections, returns and VAT Return teams.
An adjustment is not merely an accounting entry. It belongs in the correct period and requires a Credit or Debit Tax Note; bad-debt relief has strict conditions.
Current text
Implement a value adjustment
- 1
Identify the event and date.
- 2
For bad debt, evidence collection steps, write-off and 12 months without collection unless bankruptcy applies.
- 3
Issue and deliver the required Credit or Debit Tax Note.
- 4
Adjust in the correct period and reverse as required if the debt is later collected.
Connected provisions
Regulations — Article (30)
Bad debtsIt sets collection, write-off and 12-month conditions and the customer's and later-collection adjustments.
Open connected ArticleRegulations — Article (32)
Adjustment of valueIt requires correction documents and adjustment in the period in which the event occurs.
Open connected ArticleOfficial guides and tools
Connected Madar tools
Debt remaining uncollected
Late payment alone is insufficient. The supplier must pursue collection, write off the debt and meet the 12-month condition unless bankruptcy applies before making the adjustment.
Questions to help you apply it
- Which event permits the adjustment?
- Are all bad-debt conditions met?
- Was the correction document issued and VAT adjusted in the correct period?