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Frequently Asked Questions on VAT

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What can I do if there is a change to an existing or ongoing transaction?

If there is a change to an existing transaction, the taxpayer will have to make adjustments to the VAT in any previous invoices. This can happen for the following reasons:

  • An order for a good has been paid but cancelled, and the amount has to be refunded.
  • A customer opts to cancel a service that has been partially completed. The revenue and tax collected have to be adjusted accordingly.

In these cases, the suppliers must issue credit or debit notes to make corrections for the overstated or understated VAT.

  • Credit notes are issued when the supplier has collected excess VAT from the customer.
  • Debit notes are issued when the supplier has not collected enough VAT from the customer.

Credit and Debit notes must contain the tax invoice number of the original transaction.

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