VAT on credit notes
Correct an issued invoice with a credit or debit note and keep the VAT consistent.
An issued invoice (submitted, delivered or accepted) is locked. To change it you issue a Tax credit note (381) that reduces the amount and the VAT, or a Debit note (383) that increases them. Both reference the original invoice.
Create a credit note
- Go to Invoices, open the row menu of the issued invoice and click Create credit note (or Create debit note).
- The editor opens with the document kind set, the preceding invoice reference and date (BT-25, BT-26) filled in, and the buyer and currency copied from the original.
- Enter the lines you credit with the same VAT categories as the original, so the VAT is reversed in the same groups.
- Click Validate, then Submit to Taxilla as for any tax document.
The credit note is written as a UBL CreditNote and reported through the same channel as the invoice.
Rules Alya Books enforces
| Check | Result |
|---|---|
| The original has not been issued yet | Error: edit the draft instead of issuing a note |
| The original is itself a credit note | Error: a note cannot correct another credit note |
| Preceding reference differs from the original's number | Error |
| Currency differs from the original | Error |
| Note dated before the original | Error |
| Credit exceeds the remaining creditable amount | Error, with the remaining amount shown |
| Buyer TRN differs from the original | Warning |
The remaining creditable amount is the original total plus issued debit notes minus issued credit notes. Drafts and rejected notes do not count.
VAT effects
- VAT on a credit note is calculated exactly as on an invoice (per category and rate, rounded to fils) and then reduces your output VAT.
- Analytics and Compliance show credit notes with a negative sign.
- Credit notes are not offered payment recording or reminders; settle them against the original invoice's balance in your accounts.
Good to know
- Self-billed credit notes (261) and out-of-scope credit notes (81) follow the same rules.
- A credit note can also reference an invoice that was not created in Alya Books: leave the original unselected and type the preceding invoice number.