- Purpose and Definition of Credit Notes: A credit note is a financial document issued by a seller to correct or modify an existing invoice due to reasons such as incorrect pricing, returns, or discounts. It indicates that an amount is no longer owed and must reference the original invoice for clarity.
- Issuance Guidelines in Belgium: Businesses must follow specific guidelines when issuing credit notes, including labeling the document, referencing the original invoice, including VAT details, and ensuring the amount is denoted with a minus sign. Compliance with VAT regulations is crucial, especially as Belgium transitions to mandatory e-Invoicing in 2026.
- Difference Between Credit and Debit Notes: Credit notes reduce liability and are recorded as a reduction in revenue, while debit notes indicate an increase in the amount due and are recorded as an increase in receivables. Each serves distinct purposes in financial documentation and accounting practices.
Source Cleartax
