A client agreed to have some work done by a supplier. The supplier billed them in advance and they claimed the VAT back on the purchase invoice (invoice accounting).
The work was never completed and we have now discovered that the supplier has gone into liquidation, so the work will never be done. They haven't paid the invoice, so I'm presuming they'll show up as a debtor at the liquidators. The liquidators haven't been in touch.
I'm presuming that we should write this invoice off and repay the VAT claimed. Are we ok to do this unilaterally, without a credit note etc. Or should we in fact be doing it at all - we have no idea if the supllier paid over the output VAT before going into liquidation