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Credit Note in compliance with UK VAT legislation

  • Edith Karnitsch shared this idea 8 years ago
  • Payments/Billing

286 Votes
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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:
  • 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


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.


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This has been a while, any news?
WHMCS 5.3.13 in planning 2 years ago - wow - it is against the UK legislation and WHMCS is not capable to make WHMCS compliant to common and valid law in the countries it is distributing WHMCS??? strange and for buyers of WHMCS a headache and probably even serious legal issue!
Any update on a release date for this please?
Any updates on this?
Also required in a lot of other EU countries, not only UK.
WHMCS, when will it move from 'Planned' to the next progression status?

This is a non-negotiable compliance document and a billing system is incomplete without it.
WHMCS, when will it move from 'Planned' to the next progression status?

This is a non-negotiable compliance document and a billing system is incomplete without it.
Status changed to "Planned" - HURRAY! Thank you WHMCS Gods.
Any movement on this? Last comment was 9 months ago and it's marked "Investigating" - what is being investigated? Please WHMCS, ask us questions here if you need further input and lets get this important feature on the road!
Plaese :-)
Anyone from outside the WHMCS circle would believe that they were perhaps a company based in America but they're not, they in bloody Milton Keynes and the VAT processing should have been fixed at launch but even after 12 months they're still "investigating". What sort of mickey mouse operation is this?
We also require this for a number of our larger customers, please add this as soon as possible.
Seriously, this hasn't been done yet??? What's so complicated?

I guess I'll just have to faff around and get my accountant to issue the credit note I need from SAGE.
I agree with this feature and i also suggest WHMCS team to review the billing system in order to fully meet the European legal billing law.
When the latest release you have put Validation in place so the way we use to deal with credit notes cant be done.

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.