What is a Sales Credit Note?

A Sales Credit Note is an official document issued by a seller to reduce or cancel a previously issued sales invoice.

It is used when:

• Goods are returned

• A refund is issued

• An overcharge or error needs correction

A sales credit note adjusts the original invoice value and ensures VAT is corrected in accordance with UAE VAT regulations.

When to use this API

Use the Sales Credit Note API when:

• A sales invoice has already been issued

• The invoice amount or VAT needs to be reduced

• The adjustment must be recorded for VAT and audit purposes

A credit note must always reference an existing sales invoice.

How the Sales Credit Note API works

When a sales credit note is created through the API:

1. The original sales invoice is referenced

2. Adjustment details and discrepancy reasons are recorded

3. Line items and VAT reductions are calculated

4. The credit note is recorded as a tax-relevant document

5. An electronic representation is generated automatically for e-invoicing and reporting

The credit note becomes part of the system’s official VAT records.

Credit note type code

All sales credit notes created through this API are issued as Credit Notes related to an invoice.

• Credit note type code: 381 (Credit note) , 81(Credit note related to goods or services)

• This code identifies the document as an invoice-linked credit note

• It is assigned automatically and cannot be overridden

Reference to original invoice

A sales credit note must:

• Reference the original sales invoice

• Include a reason for the adjustment (discrepancy_response)

• Adjust VAT in proportion to the credited amount

This ensures a clear audit trail between the invoice and its adjustment.