Question Tag: Taxable Value

The following are the circumstances that may lead to the adjustment of the taxable value:

1. Cancellation of Supply: The supply is canceled.
2. Variation of Supply: The nature of the supply has been fundamentally varied or altered.
3. Alteration of Agreed Consideration: The previously agreed consideration for the supply has been altered by agreement with the recipient of the supply, whether due to an offer of a discount or for any other reason.
4. Return of Goods or Services: The goods or services, or part of them, have been returned to the supplier.
5. Incorrect VAT Invoice: The taxable person making the supply has given a VAT invoice in relation to the supply, and the amount shown on the invoice as the VAT charged on the supply is incorrect because of the occurrence of any one or more of the events mentioned above.
6. Incorrect Output VAT: The taxable person making the supply has filed a return for the period in which the supply was made and has accounted for an incorrect amount of output VAT on that supply due to any of the above events.
7. Bad Debts: Where there are bad debts resulting from goods or services supplied.
   (Any 3 points @ 2 marks each = 6 marks)