Credit Notes
A credit note is issued when a supply is reduced after the original tax invoice was issued. This happens when:
- Goods are returned
- A discount is given after the sale
- A supply is cancelled
- An error in the original invoice is corrected
Credit Note Requirements
Must include:
- Clearly marked as "Tax Credit Note"
- Same identifying information as the original invoice (supplier name, TRN, recipient details)
- Reference to the original tax invoice (invoice number and date)
- The adjustment amount and VAT impact
- A sequential, unique credit note number
Debit Notes
A debit note is issued when the supply value increases after the original invoice (e.g., a price increase or additional charges). Same requirements as credit notes but marked as "Tax Debit Note."
Vouchers
Face-value vouchers (e.g., gift cards, store credit):
- Not treated as a supply when sold.
- VAT applies when the voucher is redeemed for goods or services.
Other vouchers (e.g., discount coupons):
- Treated as a discount when the underlying supply is made.
- VAT is calculated on the discounted price.
Accounting Treatment
Credit notes and debit notes must be reflected in the VAT return for the tax period in which they are issued. The supplier adjusts output tax, and the recipient adjusts input tax (if registered).