VATREC13010 - Credit and Debit notes: What is the purpose of a credit and debit note?
Credit notes amend or correct previously issued invoices; the invoices are the documents that evidence taxable supplies. The credit note is documentary evidence of a change to that supply, or of a decrease in the consideration for that supply.
Debit notes might be issued where there is an increase in consideration for a supply, rather than a supplementary invoice being raised.
In this guidance only the term 鈥榗redit note鈥� has been used, although the principles outlined apply equally to debit notes and other documents having the same effect.