7. Returned goods

When you return goods to a supplier or a customer returns goods to you, the balance of payment can be settled by issuing either a:

  • replacement invoice
  • credit or debit note

If you exchange the goods for goods of the same value you don’t need to issue a new VAT invoice.

Credit and debit notes

These must show the same information as the VAT invoice and:

  • why it was issued
  • the total amount credited, excluding VAT 

  • the number and date of the original VAT invoice