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A pharmaceutical laboratory inquired whether it could issue a credit note to formalise the return of expired medicines requested by a distributor. The DGT ruled that it is not appropriate to rectify an invoice that never existed if the distributor did not purchase those specific products from the laboratory.
This ruling clarifies that a credit note (rectifying invoice) can only be issued to correct a prior transaction; if no initial sale occurred between the specific parties, no credit note can be used to process the return.
The tax team reviews your specific situation.
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