21.11.08

Debt for services in the case of liquidation of the debtor is considered uncollectible for the purposes of taxation. The taxpayer is entitled to write off the amount of the uncollectible debt, including value added tax, in full.

The Ministry of Finance explained this in a letter dated from October 21, 2008 # 03-03-06/1/596, based on the fact that a bad debt is a non-operating expense for the purpose of income tax calculation. Other non-operating expenses could include the amount of bad debts not covered by a doubtful debt reserve (paragraph 2, article 266 of the Tax Code).

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Source: Российский налоговый портал