Can we recover the VAT already paid to IRD for cancelled invoice or unpaid invoices

Question

We have issued a VAT invoice and paid the relevant VAT as well. How to recover the paid VAT in following circumstances

1. Invoice gets cancelled since the contract gets terminate
2. Client has not paid for the invoice and record as bad debt

Answer 1

1. If the invoice gets cancelled, then you need to create a credit note, so it is automatically adjusted from the credit note period.

2. Vat relating to bad debt is deductible from current payable.