COVID-19: VAT Treatment of cancellations, No-shows and Bad debts in Nigeria
It is no news that the COVID-19 pandemic has had significant negative impact on businesses across the globe. One of these is the expected increase in debt default rates, cancellations of contracts and/or no-shows by individuals and businesses alike
We recognise that business leaders are contemplating the tax implications that may arise as a result of these challenges. As such, we have highlighted a few points below to serve as guidance on the treatment of bad debts, cancellations and no-shows for VAT purposes in Nigeria.
Please note that we have only provided general information above and the practicalities may differ on a case-by-case basis – depending on the nature of your business. We are happy to provide additional advice on any specific issues as may be required. Do not hesitate to reach out to us accordingly.
Please click on the links to access KPMG’s publications on Indirect tax treatment of bad debts and Indirect tax treatment of cancellations and no-shows.
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