The registered supplier may reduce the output tax in a current tax period to adjust the output tax paid for any previous tax period if all of the following conditions are met:

1. Goods and services are supplied and the due tax is charged and paid.

2. The consideration for the supply is written off in full or part as a bad debt in the accounts of the supplier.

3. The lapse of more than six (6) months following the date of supply.

4. The registered supplier notifies the recipient of goods and recipient of services of the amount of consideration for the supply that has been written off.

The registered recipient of goods or recipient of services shall reduce the refundable input tax for the current tax period related to a supply received during any previous tax period where the consideration has not been paid and all of the following conditions are met:

1. The registered supplier reduced the output tax as stated in Clause (1) of this Article and the recipient of goods and the recipient of Services has received a notification from the supplier of the Consideration being written off.

2. The recipient of goods and recipient of services received the Goods and services and the relevant Input Tax was deducted.

3. The Consideration was not paid in full or in part for the supply for over (6) six months.

The reduction stated in Clause (1) and (2) shall be equal to the Tax related to the consideration which has been written off according to paragraph (b) of Clause (1) of this Article.