- Debit and credit notes are crucial documents for VAT transactions, used to adjust for changes in quantity or pricing and to rectify errors.
- As e-invoicing becomes more common, these notes are also being generated electronically, allowing for real-time data availability and streamlined compliance with tax regulations.
- Debit notes are issued when goods are returned or services are reduced,
- while credit notes acknowledge that the receiver’s account has been credited due to returns or adjustments.
- Both types of notes must reference the original invoice number and include details such as nature of the document, name, and address.
Source Fintedu
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