Do I always need to include a credit note in my VAT return?
Yes. A credit note must be included in your VAT return, just like a regular invoice. It affects your turnover and the VAT payable or recoverable.
Credit notes in your VAT return: how to handle them correctly
02/06/2025
An incorrect invoice, returned goods, or a commercial correction: all of these situations can lead to a credit note. But how should you correctly process it in your VAT return? The answer depends on one key element: did you receive the credit note from a supplier, or did you issue it yourself to a customer? The rules are not the same. Here is how to proceed.
You receive a credit note from a supplier
Let’s take a common situation. You order goods, receive the invoice, record it in your accounts, and pay the amount due. Afterwards, a problem arises: the delivery is incorrect or the product does not match your order. You return the goods and the supplier sends you a credit note.
How should this correction appear in your VAT return?
Treatment of the original invoice
When recording the original invoice, you would normally have:
• recorded the amount excluding VAT in box 81, 82 or 83
• included the deductible VAT in box 59
Treatment of the credit note
When you receive the credit note, you must correct these amounts in your VAT return.
In practice:
• you reduce the amount in box 81, 82 or 83 by the amount excluding VAT of the credit note
• you report that same amount in box 85
• you enter the VAT stated on the credit note in box 63
Point of attention
The VAT rate applied to a credit note is always identical to that of the original invoice.
You do not adjust the VAT reported in box 59 when recording the invoice. The VAT shown on the credit note is no longer deductible, as the corresponding expense also disappears.
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| Another important point: this method only applies to credit notes from Belgian suppliers. When dealing with a foreign supplier, the rules become more complex. |
You issue a credit note to a customer
The situation is different if you issue a credit note to a customer yourself.
The principle remains the same for VAT: the rate applied must be identical to that of the original invoice. However, the treatment in the VAT return does not follow exactly the same logic as for a received credit note.
How to process a credit note issued
When you issue a credit note:
• you do not adjust the original amount reported in your VAT return when the invoice was issued
• you report the amount excluding VAT of the credit note in box 49
• you enter the corresponding VAT in box 64
In other words, for a received credit note, you correct the original amounts. For an issued credit note, you do not modify the original return. The correction is reflected in different boxes.
PIA Go! – Your credit notes processed correctly and automatically
Errors in the treatment of credit notes are among the most common adjustments during VAT audits. A credit note that is recorded incorrectly can lead to an inaccurate return and require a correction later on.
With PIA Go!, you don’t have to worry about this. PIA accountants take care of your entire VAT administration and ensure that all invoices and credit notes are reported in the correct boxes of your return.
You save time, avoid fines, and can focus on your business.
Always process your credit notes correctly?
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FAQ
What if the credit note falls in a different quarter than the original invoice?
This is not a problem. The credit note must be processed in the quarter in which you receive or issue it. The VAT authorities rely on the date of issue or receipt, not on the date of the original invoice.
Can I deduct VAT from a received credit note?
No. A credit note corrects a previous purchase. The VAT initially deducted is therefore cancelled in whole or in part. The VAT on the credit note must be reported in box 63 and not in box 59.
What if the amounts differ from the original invoice?
This can occur, for example, in the case of a partial return. In that case, you only process the amount stated on the credit note. The amounts must, however, remain consistent and properly documented.
What about credit notes from foreign suppliers or issued to foreign customers?
In this case, different rules apply. These are often intra-community or international transactions, and the VAT return boxes are different. It is advisable to consult an accountant.
Can I issue a credit note without an original invoice?
In principle, no. A credit note is a corrective document linked to a previous invoice. Without an original invoice, it is rather a discount or commercial gesture, which must be treated differently in the accounts.
Written by Charlotte Backelandt , Marketing & Content Specialist,
reviewed by Tom Castelein, Personal Income Tax Expert.
reviewed by Tom Castelein, Personal Income Tax Expert.