Handling Zero-Rated Tax Invoices Issued in Split Batches Under a Single Purchase Certificate
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I have an inquiry regarding the issuance of a Purchase Certificate. The transaction structure is Company A (Supplier) → Company B (Exporter) → Company C (Overseas Client), and we intend to pay the transaction amount between A and B in a total of three installments.
Q1. In this case, is it possible to issue three separate tax invoices using a single Purchase Certificate?
Q2. If possible, if the Purchase Certificate is issued in the month of the first installment payment (no later than the 10th of the following month), can it be applied to the subsequent tax invoices issued later? (e.g., 1st invoice issued → Purchase Certificate issued → 2nd and 3rd invoices issued sequentially)
Answer 1
- 0✓Q1. Since tax invoices must be issued based on the time of supply of goods or services, if the supply is made in three separate installments, it is possible to issue them in three separate instances. Q2. A Local L/C (Purchase Confirmation) issued within the first 10 days of the month following the month of the first invoice is considered to have been issued in advance, so there is no defect in its issuance. It is permissible to issue the Purchase Confirmation during this period and then issue the 2nd and 3rd tax invoices within the scope of the confirmed amount.Machine translated
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