28. Credit Notes and Debit Notes

(1) Where a tax invoice has been issued and the amount shown as tax charged in that tax invoice exceeds the tax liable in respect of the sale, the VAT dealer making the sale shall issue to the buyer a credit note and containing the particulars prescribed specified in sub-rule (4) of this rule.

(2) Where a tax invoice has been issued and the tax liable in respect of the sale is more than the amount shown as tax charged in that invoice the VAT dealer making the sale shall issue to the buyer a debit note and containing the particulars specified in subrule (5).

(3)(a) Credit notes and debit notes in respect of goods returned after sales or purchases shall be issued only when the goods have been returned within a period of twelve months from the date of sale.

(b) Credit notes and debit notes in respect of any annual discounts and any price adjustments shall be issued as and when the accounts are settled between the seller and the buyer provided the settlement is made within the twelve months from the end of the year and the discounts or price adjustments are supported by proper documentary evidence.

(4) Credit Notes shall contain the following particulars namely;-

(a) the words “credit note” in a prominent place.

(b) the commercial name, address, place of business and the Taxpayer identification number of the VAT dealer making the sale.

(c) the commercial name, address, place of business and the Taxpayer identification number of the buying VAT dealer.

(d) the date on which the credit note was issued;

(e) the rate of tax;

(f) the sale price shown on the tax invoice, the revised amount of the sale price, the difference between the two amounts and the tax charged that relates to that difference;

(g) a brief explanation of the circumstances giving rise to the issuing of the credit note; and

(h) information sufficient to identify the taxable sale to which the credit note relates.

(i) proof of transport of the goods in respect of sales returns like LR. or RR.

(5) Debit Notes: The debit note shall contain the following particulars namely;-

(a) the words ‘debit note’ in a prominent place

(b) the commercial name, address, place of business and the tax identification number of the VAT dealer making the sale;

(c) the commercial name, address, place of business and the taxpayer identification number of the buying VAT dealer.

(d) the date on which the debit note was issued;

(e) the rate of tax;

(f) the sale price shown on the tax invoice, the revised amount of the sale price,the difference between the two amounts and the tax charged that relates to that difference;

(g) a brief explanation of the circumstances giving rise to the issuing of the debit note;

(h) information sufficient to identify the taxable sale to which the debit note relates; and

(i) proof of transport of the goods in respect of sales returns like LR or RR.