Credit note vs VAT bad debt relief

Credit Notes vs VAT Bad Debt Relief: How to Choose the Right Option

Bad debts are an unfortunate reality for most businesses. When customers don’t pay, it impacts cash flow, profitability, and overall financial stability. But beyond the cash loss, there’s also the VAT question: should you issue a credit note or claim bad debt relief (BDR)? While both options adjust VAT, the rules are very different—and choosing the […]