Credit notes

When must a VAT credit note be issued?

An accountable person who wants to correct their Value-Added Tax (VAT) invoice issues a VAT credit note when:

  • there is a change in the original price because of an allowance, discount or similar adjustment
  • or
  • the VAT rate on the original invoice was incorrect.

You need to issue the credit note within 15 days of the end of the month in which goods or services are supplied.

When is a credit note not required?

Where you agree a reduction in the VAT exclusive price with your customer, there is no obligation to issue a credit note as long as the VAT payable is unchanged.

Next: What information is required on a VAT credit note?