UAE VAT Credit Note Format

Ready-To-Use UAE VAT Credit Note Format

Download Free UAE VAT Credit Note Format in Excel, OpenOffice Calc, Google Sheet, and PDF to report goods to return or overbilling.

This template consists of an Auto-numbering system. Thus, you can easily manage the sequence of credit notes. It also consists of Credit Note Register which records credit notes issued during the month.

Moreover, you can record goods returns as well as rate differences of overcharged invoices. It also consists of a Printable Credit Note Format.

Credit Notes Under UAE VAT

Customers frequently return products in the commercial world. The number of products returned might be in full or a portion of the quantity supplied. Goods are returned for a variety of reasons like damage during transit, delays, or goods not being according to the specifications.

The supplier levies VAT at the regular rate against a Tax Invoice. When the customer returns goods in part or full, the VAT charged in the Tax invoice also needs to be reversed. Under the basic accounting principles, a credit note is issued. But with the effect of VAT, a Tax Credit Note will be issued to customers the goods returned or even in the case of overbilling.

Law for Issuance of Tax Credit Notes

Article 60 of the Federal Decree-Law No. 8 of 2017 states:

VAT Law - Tax Credit Notes

Source: www.mof.gov.ae

Contents of UAE VAT Credit Note As Per The VAT Law

Article 60 point number 1 of the Executive Regulation of Federal Decree-Law 8 of 2017 defines:

1. The Tax Credit Note shall contain the following:

a. The words “Tax Credit Note” clearly displayed on the invoice.
b. The name, address, and Tax Registration Number of the Registrant making the supply.
c. The name, address, and Tax Registration Number of the Recipient where he is a Registrant.
d. The date of issuing the Tax Credit Note.
e. The value of the supply shown on the Tax Invoice, the correct amount of the value of the supply, the difference between those two amounts, and the Tax charged that relates to that difference in AED.
f. A brief explanation of the circumstances giving rise to the issuing of the Tax Credit Note.
g. Information sufficient to identify the supply to which the Tax Credit Note relates.

Effect of Credit Note on VAT Liability

A Tax Credit Note reduces the tax due to the FTA by the provider on the supply while also lowering the amount of input tax that may be recovered by the receiver on the supply.

A credit note is a document produced by a supplier in response to a customer discount or decrease in the original VAT invoice price. Due to Credit Notes, the amount of VAT paid to the government is reduced.

Because the value of the goods or services provided has been decreased by that amount, a goods return or a reduction in billing amount lowers your tax burden.

VAT on Sales – VAT on Credit Notes = VAT owed to the government in most cases.

Download UAE VAT Credit Note Format (Excel, OpenOffice Calc, Google Sheet & PDF)

UAE VAT Credit Note Template

Keeping in mind the rules mentioned above, we have created a UAE VAT Credit Note Template with predefined formulas and functions. This template helps issue a VAT compliant Credit Note and maintain records of credit notes issued.

Download by clicking below on the desired format:

Microsoft Excel OpenOffice Calc Google Sheet

You can download the Fully Automated UAE VAT Invoice Template from the link below:

UAE VAT Invoice Template

 

UAE VAT Invoice Template

Additionally, you can download VAT templates like UAE VAT Payable Calculator, UAE VAT Compliant Inventory Template, and Payroll Template With Attendance.

Furthermore, feel free to contact us for the customization of this template as per your requirement. We also design new templates based on your needs. You can hire us for our services on Fiverr or directly contact us at info@msofficegeek.com.

Components of UAE VAT Credit Note Template

This template consists of 4 sheets: Setup File, UAE VAT Credit Note Template, Credit Note Register, and Printable UAE VAT Credit Note Format.

Let us understand the working of each file in detail.

Setup File

Setup File

UAE VAT Credit Note Format

The purpose of this file is to insert one-time data to save you time while issuing a Tax Credit Note. It consists of the 3 sections: Supplier Information, Client Information, and Product Information.

Supplier information consists of the following:

Company Name
Supplier Address
Supplier TRN
Financial Year

Customer Information consists of the following columns:

Customer ID
Client Name

Client Address
Customer TRN

The Product Information section includes the following:

Product ID
Product Name
Price/Rate per Unit
VAT Rate

You can pre-define everything in this sheet and the UAE VAT Credit Note template automatically fetches the data from this sheet.

UAE VAT Credit Note With Autonumbering

UAE VAT Credit Note Template

UAE VAT Credit Note Format consists of 4 sections: Supplier Information, Customer Information, Product Information,  and Other Information.

Supplier Details

Supplier details like company name, company address, and VAT Registration number are auto-populated based on details entered in the setup file. As per the rules, the Credit Note consists of the heading “Tax Credit Note”.

UAE VAT Credit Note Format

Customer Details

In the Customer Information Section, insert the Credit Note number only for the first time. Later it will automatically generate the preceding number in the sequence. The template displays the current date with the help of the TODAY Function.

Insert the Tax Invoice number previously issued to the customer along with taxable value and VAT amount. Moreover, select customer ID from the dropdown list and it auto-updates all of the following details:

Customer Name
Customer Address
TRN
Type

Select the type of Credit note from the dropdown list. It can be either local or exported. If you select “local”, then 5% VAT will be applicable. Whereas, if you select the type as export, 0% will be applicable.

Product Details

UAE VAT Tax Credit Note

Furthermore, the Product Information section consists of the following columns:

Sr.
Product ID
Product Description
Reason

Rate
Qty
Taxable Value
VAT %
Amount

The serial number is auto-populated. Select product ID and it fetches all details except the quantity. Manually insert the quantity and it will automatically populate the taxable value and amount column.

In case of price difference manually insert the value in the Taxable Value column. The template automatically calculates the amount for you.

Other Information Section

UAE VAT Tax Credit Note

The Other Information section displays the summary of the credit note.

Moreover, the other information section displays the Credit Note amount in words using the Spellnumber Function manually inserted in the file.

Furthermore, it consists of a signature section, company stamp section, and Notes along with greetings.

Click on the print button and the invoice will open the Save as PDF dialog box.

UAE VAT Credit Note Format

Once you execute the command the Credit Note number will automatically jump to next in the sequence as it is programmed with VBA code.

UAE VAT Credit Note Register

UAE VAT Credit Note Register

After you issue a Credit Note to your customer, it is necessary to maintain client-wise records. Hence, we have created a UAE VAT Credit Note Register to record your invoices.

This sheet consists of the following details:

Date
Credit Note No.
Customer ID
Customer Name
TRN Number
Taxable Value
VAT Amount
Amount

Insert date and Credit Note number. Select the customer ID and it will fetch the TRN number of the customer. Enter the Taxable Value and VAT Amount. The Amount column is auto-populated.

Printable UAE VAT Credit Note Format

Click on the image to enlarge and print the Printable UAE VAT Credit Note Format or Click on the button below to download as PDF:

Printable UAE VAT Credit Note Format

PDF

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