Tax Invoices and Credit Notes
Statutory Basis: VAT Act §41(3)
What statute says
Value Added Tax Act, 2014 (as amended by the VAT (Amendment) (No. 2) Act, 2021), s. 41(3) (record-keeping requirements) requires taxable supplies to be supported by valid tax invoice evidence. Input tax deduction and output tax accuracy both depend on invoice-level records that identify supplier, date, value, and VAT treatment. Where a supply is adjusted after issue (returns, discounts, cancellations, pricing errors), the adjustment must be documented through a valid credit note or debit note.
The specific section governing tax invoice format (separate from §41(3) record-keeping) is pending PO/Julian validation under issue #110. This page will be updated once the authoritative section is confirmed.
The legal principle is traceability: every VAT adjustment should point back to the original transaction and preserve an auditable record of why the amount changed.
What platform does
CoralLedger Comply stores transaction records with invoice references and supports manual or imported entry pathways. For post-sale adjustments, the Credit Notes workflow ties each note to the original transaction, tracks status, and carries the VAT effect into the selected return period.
Audit logging records who created, issued, voided, or applied a credit note. This creates a clear chain from original sale to VAT adjustment, which is useful in audits and internal review.
Customer responsibility
Your team must issue legally compliant invoices and credit notes, attach the right business evidence, and ensure adjustment reasons are accurate. Comply can structure and track the data, but it cannot verify whether your external invoice documents satisfy all statutory wording or format requirements.
You are also responsible for period correctness: credit notes should be applied to the proper return period based on statutory treatment and your advisor's guidance.