Credit note

A credit note is the document a registered seller issues to reduce what an invoice charged: when goods are returned, when the value or tax on the invoice was more than it should have been, or when the goods or services turned out deficient. The original invoice is not edited; the credit note stands beside it.

It has to be declared in the return for the month it is issued, and no later than 30 November after the end of the financial year of the sale, or the date the annual return is filed, whichever comes first. The opposite case, an invoice that charged too little, needs a debit note.