Customer hasn't paid your invoice? You may be able to reclaim the VAT

A business may be eligible to reduce Output VAT on unpaid customer invoices, subject to specific ZATCA conditions. All five conditions below need to be met.

The five conditions

1. 01

   VAT paid

   The VAT must have been previously declared and paid to ZATCA.

2. 02

   Unrelated customer

   The supply must be made to a person who is not a related party.

3. 03

   12 months

   At least 12 months must have passed from the date of supply.

4. 04

   Accountant's certificate

   A Certified Accountant must confirm that the unpaid amount has been written off in the books.

5. 05

   Legal recovery

   Where total unpaid amounts exceed SAR 100,000, unsuccessful formal legal recovery procedures must be evidenced.

Reference: Saudi VAT Implementing Regulations.

This is general information, not advice on your specific case. Every claim depends on your facts and your records.