Credit Note in compliance with UK VAT legislation
-
Edith Karnitsch shared this idea 8 years ago
- Payments/Billing
- 82 Comments
316
Votes
Login to Vote
The refund functionality in WHMCS 5.3.13 is not on accordance with UK legislation.
When a refund is issued, the system must generate a Credit Note with the following details:
Reference: https://www.gov.uk/government/publications/vat-notice-700-the-vat-guide/vat-notice-700-the-vat-guide#credits-and-debts
The current system of issuing a revised invoice contravenes UK VAT legislation and makes WHMCS unusable for UK VAT purposes when it comes to refunds.
The main issue I can see is that currently the date of the refund is not recorded as separate entry, neither is the reason for the refund nor is a unique number applied. The renaming of the document to "Credit Note" should be straight forward.
When a refund is issued, the system must generate a Credit Note with the following details:
- be headed ‘credit note’ or ‘debit note’ as appropriate and show clearly all the following details:
- the identifying number and date of issue
- the name, address and registration number of the supplier
- the name and address of the customer
- the reason for its issue - for example, ‘returned goods’
- a description which identifies the goods or services for which credit is being claimed or allowed
- the quantity and amount for each description
- the total amount credited, excluding VAT
- the rate and amount of VAT credited
- the number and date of the original VAT invoice - if you cannot do this (for example, because returned goods cannot be identified with a particular invoice), you must be able to satisfy us by other means that you accounted for VAT on the original supply
Reference: https://www.gov.uk/government/publications/vat-notice-700-the-vat-guide/vat-notice-700-the-vat-guide#credits-and-debts
The current system of issuing a revised invoice contravenes UK VAT legislation and makes WHMCS unusable for UK VAT purposes when it comes to refunds.
The main issue I can see is that currently the date of the refund is not recorded as separate entry, neither is the reason for the refund nor is a unique number applied. The renaming of the document to "Credit Note" should be straight forward.
Merged Ideas
Issue a credit note for unpaid invoice.
I have an unpaid invoice that i want to cancel, my accountant is telling me that i can't canceled an electronic invoice and that i need to issue a credit note with the exact amount in order to cancel an invoice.This functionality is not something that is currently offered by WHMCS.I'm sure that this is something that every one need and it's defiantly need to be offered by WHMCS.If any one know a temporary salution it will be great, thanks.
I have an unpaid invoice that i want to cancel, my accountant is telling me that i can't canceled an electronic invoice and that i need to issue a credit note with the exact amount in order to cancel an invoice.This functionality is not something that is currently offered by WHMCS.I'm sure that this is something that every one need and it's defiantly need to be offered by WHMCS.If any one know a temporary salution it will be great, thanks.
87 Comments
Login to post a comment.
This is a non-negotiable compliance document and a billing system is incomplete without it.
This is a non-negotiable compliance document and a billing system is incomplete without it.
I guess I'll just have to faff around and get my accountant to issue the credit note I need from SAGE.
Validation Error
Amount In cannot be less than zero.
The fee being entered must be less than the amount in value.
You need to put a patch to rectify this or allow admins to turn off that validation and also work on a credit note feature.