When to issue a Credit Note?
The Tax and Customs Authority advises issuing a Credit band phone number data in the following situations:
Invoice error : issuing a credit note for the full amount of the invoice and issuing a new invoice with the new data.
Example : when the customer requests the inclusion of the tax identification number on the invoice.
Product Exchange : issuing of a credit note only for the products to be exchanged and processing of a new invoice.
Example : when a customer exchanges a shirt because it is not the right size.
Product Returns : issuing a credit note for the partial or total value of the returned products.
Example : when the customer returns some or all of the products on the invoice.
For the Credit Note to be considered valid, there are elements that must be included:
Date;
Merchant data;
Customer data (optional);
Reference to the invoice number you are rectifying ( example : Credit note referring to Invoice 2017/10);
Reason for rectification ( Example : return of product; exchange of product; inclusion of name and tax number on the invoice).
How to Cancel Invoices and Issue Credit Notes?
The procedure recommended by the Tax Authority, so that you can rectify an invoice, is to issue a Credit Note. Find out how to "cancel" an invoice through the point of sale or backoffice of the Vendus invoicing software.
Credit Note vs Debit Note
As we mentioned, a credit note is used to modify data on the invoice. These corrections are only permitted in certain situations, such as correction of incorrectly filled out data, exchanges or returns.
In turn, the debit note is a corrective document that allows the value of a given invoice to be corrected, when VAT has not been applied or when the items sold have been invoiced with a lower VAT than supposed.
For example, if an invoice is issued without the 23% VAT rate on a certain product, a debit note can be used to correct this non-compliance.
