GTL Summary:

Article 27 of the GCC Common VAT Agreement authorises a Taxable Person to adjust the value of the Tax imposed on a supply after its original date. This adjustment is permissible under three specific circumstances: the total or partial cancellation or rejection of a supply; a reduction in the value of the supply; or the total or partial non-collection of the consideration. For adjustments related to non-collection of consideration, the treatment must align with the specific conditions applicable to bad debts as stipulated by the domestic legislation of each individual Member State, providing a framework for post-supply VAT recalculations.

Document Type: Tax Law Article
Law: Common VAT Agreement
Article Number: 27
Country: 🏳️ GCC
Location: Chapter 5 - Calculation of Tax
Order: 27
Last updated at: 2025-12-19 09:23:02 UTC

Chapter 5 - Calculation of Tax

Article 27 - Adjustment of Tax Value

A Taxable Person may adjust the value of the Tax imposed upon any of the following events taking place at a date later than the Supply date:

  1. Total or partial cancellation or rejection of a Supply;

  2. Reduction of the Supply value;

  3. Total or partial non-collection of the Consideration in accordance with the conditions applicable to bad debts in each Member State.

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