The FIRS e-lnvoice System fully supports credit notes in compliance with the Universal Business Language (UBL) standard. Here's how the system manages credit notes and handles negative VAT calculations:
Credit Note Issuance:
Credit notes can be issued in cases like discounts, purchase order (PO) cancellations, returns, or any other scenarios requiring an adjustment to the original invoice. These credit notes are structured in the UBL format, ensuring compatibility and seamless integration with the FIRS system.
Negative VAT Calculation:
Yes, the system supports VAT calculations. When a credit note is issued, the system records the VAT amount which will be taken as a negative value at the point of filing with FIRS.
Invoice Linking:
Each credit note is linked to the corresponding original invoice through a reference field in the UBL schema. This traceability ensures transparency and facilitates compliance during audits or tax reconciliations.
Submission and Reporting:
Credit notes are submitted to FIRS through the Access Point Provider (APP), just like regular invoices. Upon filling and validation by FIRS, the credit note is processed, and the adjusted (negative) VAT is reflected in the tax administration system.
