Vat on Bad Debts Cash receipts basis

[Key]

Wondering can anyone answer this question. We have a limited company and are owed money by 2 companies currently under examinership. We pay vat on a cash receipts basis. If these companies fail to pay us are we liable for the vat also? Im assuming these companies have already claimed credit.

 

[mathepac]

If you only pay VAT on receipts, and you never receive payment on the invoice(s), then you have no VAT liability. There are other matters arising which you may need to talk to your financial advisers about.