How to handle changes in the supply value after issuing a Purchase Confirmation

Question

We issued a zero-rated tax invoice using a provisional unit price for the month in which the Purchase Confirmation was obtained. Two months later, the unit price has been finalized, and we are now in a situation where we must pay additional costs. In this case, I would like to inquire whether we should cancel the existing Purchase Confirmation and issue a new one, modify the existing one, or if it is acceptable to leave it as is. According to my online research, I found some information suggesting that if it is clear that the goods were supplied under that specific Purchase Confirmation, it is possible to issue a zero-rated tax invoice without modifying the Purchase Confirmation.

tflow_expert · Answer

There may be differences between the amount stated on the Purchase Confirmation and the actual purchase price due to fluctuations in purchase prices or exchange rates, and a margin of error for the issued amount is recognized. While there is no explicitly defined range for this margin of error, it is generally understood to be within a range that can be explained by unit price or exchange rate fluctuations. However, since this is a tax-related matter, if you wish to take a conservative approach, the amount on the zero-rated tax invoice should, in principle, fall within the amount stated on the Purchase Confirmation. Therefore, if the difference is significant, we recommend reissuing the document with the updated amount.

How to handle changes in the supply value after issuing a Purchase Confirmation

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