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Is it possible to apply discount on the VAT of bad debts?


In accordance with Law numbered 7104 and the amendment on Article 29 of Law numbered 3065, the VAT of bad debts may be subject to a discount. The company lawyer started an execution proceeding on 31.12.2018 for the receivables to not get affected by the increase in transaction stamp costs. Normally, the execution proceeding was set to start in January.

We’ve just received the documents. According to the related article of the Law, a discount may be applied on the VAT in the taxation period that it is written as a loss and this discount may be written as income. Is it possible to make provisions in January and apply a discount on the VAT?


Provisions shall be made until 31.12.2018. It is possible to apply a discount on the VAT until 31.12.2019 (Paragraph 3 of Article 29 of VAT Law.)






Source: İSMMMO
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