Revenue administration clarifies certain aspects of the issuance of a credit note

According to Art. 115, para. 1 and par. 3 of the VAT reduction in the tax base of delivery or termination of the supply for which an invoice is issued, the supplier must issue a credit note to the invoice. The provision of Art. 115, para. 2 VAT Act states that the notice must be issued no later than 5 days from the occurrence of the respective circumstance under Art. 115, para. 1 of the VAT Act. From the wording it is clear that the issue of a credit note implies termination of supply or reduce the tax base of the delivery, as well as agreement between the parties to the transaction to implement the legal consequences of the issued credit note.

In Interpretation № 2322817 from 04.15.2013, the NRA also states that according to the Accounting Act it is carried out in compliance with the accounting principle "accrual" - income and expenses arising from transactions and events are charged at the time of their occurrence, regardless of the time of receipt or payment of cash or its equivalents and included in the financial statements for the period to which they relate. Given that issued a credit note should be included in the accounting registers in the period in which it was issued despite the fact that payment it is not completed.

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Revenue administration clarifies certain aspects of the issuance of a credit note

Attorney at law Iuila Danova

#3, Dobrotica Str., Varna, Bulgaria

Mob: +359 895 64 59 40

WWW: advokatvarna.com

Email: iulia.danova@abv.bg