TaxTMI 
TaxTMI 
I have issued B2B invoice on services but the recipient has not given the tax amount now can I give a credit note if so can I give a credit note for the tax amount?
credit note
01 Dec 2023 
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Credit note issuance limits: cannot reduce supplier output tax when tax incidence passed; pursue legal recovery instead.
Section 34 permits a credit note when an invoice's taxable value or tax charged exceeds the tax payable, when goods are returned, or when supplies are deficient; credit notes must be declared in the supplier's return by the specified deadline and tax adjusted as prescribed. No reduction in output tax is allowed if the tax incidence and interest have been passed to another person. Where a B2B recipient has not paid the tax amount, the facts do not fit section 34's grounds for issuing a credit note and the supplier's recourse is contractual or legal action against the recipient. (AI Summary)
Section 34 permits a credit note when an invoice's taxable value or tax charged exceeds the tax payable, when goods are returned, or when supplies are deficient; credit notes must be declared in the supplier's return by the specified deadline and tax adjusted as prescribed. No reduction in output tax is allowed if the tax incidence and interest have been passed to another person. Where a B2B recipient has not paid the tax amount, the facts do not fit section 34's grounds for issuing a credit note and the supplier's recourse is contractual or legal action against the recipient. (AI Summary)