Issues regarding cases where the quantity/amount on a Purchase Confirmation exceeds that of a Zero-Rate Tax Invoice
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The transaction structure is between A (Vendor) and B (Headquarters). B sends a purchase order to A, then prepares a Purchase Confirmation based on that purchase order and sends it to A. I am inquiring whether there are any issues if the Purchase Confirmation is prepared according to the purchase order, resulting in a quantity and amount that are larger than those on the Zero-Rate Tax Invoice.
Answer 1
- 0As a rule, a Local L/C (Purchase Confirmation) should be issued in advance before the purchase of goods. Therefore, depending on the situation, discrepancies may arise between the actual purchase amount (the amount on the tax invoice) and the confirmation amount, and minor differences are acceptable. However, please note that while it is fine if the tax invoice amount is smaller than the Purchase Confirmation amount, if the tax invoice amount is larger than the Purchase Confirmation amount, the zero-rated tax invoice will only be recognized within the scope of the Purchase Confirmation amount.Machine translated
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