How to issue a Purchase Confirmation when a single contract is split into a down payment and a balance
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For a single contract, the supplier issued a standard tax invoice for a down payment amounting to 30% of the total value, and our company has since remitted this 30% down payment to the supplier (we plan to have this reissued as a zero-rated tax invoice after issuing the Purchase Confirmation). The goods have not yet been exported (export is planned for a later date), and the invoice and remittance for the remaining 70% have not yet been processed.
In this case, I would like to inquire about the following:
1. Do we need to issue two separate Purchase Confirmations—one for the 30% down payment and another for the remaining 70% (is it possible to issue two Purchase Confirmations for a single contract)?
2. If we must issue two, what should be entered as the purchase date for the 30% down payment?
3. Can we issue the confirmation by entering only the amount corresponding to the 30%?
4. Can we submit the Purchase Order (PO) received from the overseas company as supporting documentation to issue Purchase Confirmations for both the 30% down payment and the remaining 70% before shipment?
Answer 1
- 0✓1. There is a previous response stating that for partial shipments under the same contract, one Purchase Confirmation can be issued, and multiple tax invoices can be issued for each partial shipment. In light of this, we believe it is correct to issue one Purchase Confirmation and issue tax invoices separately at the time of the down payment and the balance payment. 2. Since an export contract can be presented as supporting documentation when issuing a Purchase Confirmation, if the purchase order you received has the same effect and content as a contract, we believe it can be submitted as supporting documentation.Machine translated
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