Commentary

V7.428 Supply—credit and debit notes

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.428 Supply—credit and debit notes

Part V7 Tax planning | Commentary

V7.428 Supply—credit and debit notes

A credit note is issued by the supplier of goods to make any adjustments to invoices previously raised. This can apply if the goods are returned, if a pricing error on the invoice has occurred or if discounts need to be applied to a customer's account.

Note – a credit note must not be issued in respect of a bad debt.

A debit note fulfils the same need as a credit note – but is issued by the customer rather than the supplier. A valid debit note places the same legal obligations on both parties as a valid credit note.

To be

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