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Credit notes

LW
2022-01-05

Question

I am self-employed in secondary occupation and do have a vAT number, but I am exempted from VAT. From September to December, I sent my invoices to my customer with VAT, as I thought I was subject to VAT. This is what I was told by the social secretariat. It was only when I submitted my quarterly return that I realised I am exempted because my turnover is less than £25,000 per year.

I would therefore like to cancel the previous invoices to my customer. I create a credit note via Dexxter, but I notice that the amount on the credit note is positive. Is this correct? I want to cancel the previous invoice and then resend an invoice without VAT and refund the difference (vAT) to the customer.

Hello,

Yes, that is correct. Dexxter adds credit notes with positive amounts, but of course it does state 'credit note' in large letters on the document. So it is quite noticeable :)

Even simpler, if your customer agrees, of course, and your initial sales invoices do not end up in their accounts -> Simply delete the sales invoices with vAT and explicitly confirm with them (preferably by email) that the first sales invoices were incorrect and can therefore be completely deleted.

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You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.

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