A credit note is the document a VAT-registered business in Thailand gives the buyer when a sale that already has a tax invoice turns out to be smaller, for example when a customer returns a damaged item, an order arrives short, or the price was charged too high. It lowers the seller's output tax and the buyer's input tax to the right amount. Download the template below for free, no sign-up needed.

Download the free credit note template

Credit note template, Excel (.xlsx) fill in the blue cells only; the difference, the VAT and the total credited add up by themselves
Credit note template, Word (.docx) every field can be edited; add your shop logo
Credit note template, PDF to print print it and fill it in by hand
See a filled-in example the example uses made-up data

What is a credit note?

When a business has sold goods or a service and issued a tax invoice, and the right amount later turns out to be lower, it must issue a credit note to the buyer. A credit note counts as a kind of tax invoice, so only a VAT-registered business may issue one. Reasons that allow a credit note include:

a lower price because the goods do not match what was agreed, are damaged or arrived short
a price for goods or a service charged higher than it should have been
goods returned because they are damaged, do not match the sample or do not match the description
goods returned or exchanged under a trade agreement, within a reasonable time
a deposit, booking fee or advance payment refunded under an agreement
a service that was faulty, not provided as agreed, or a service contract cancelled

A business that is not VAT registered may not issue a credit note; one that does must pay the VAT written on it. To refund a customer, keep your own record of the refund and issue receipts as usual. See the free receipt template

What must a credit note include?

Under section 86/10, a credit note must show at least:

the words credit note (ใบลดหนี้) where they are easy to see
the name, address and tax ID of the business issuing it
the name and address of the buyer
the date it is issued
the number of the original tax invoice (and its book number, if any), the value on that invoice, the correct value, the difference and the VAT on the difference
a short reason, naming only the items that were wrong

If the original was a full tax invoice, add three more things: the buyer's tax ID when the buyer is VAT registered, and the head office or branch of both the seller and the buyer, as written on the original invoice. The details are written in Thai and in baht. A credit note missing a key item is an offence under section 90(12).

One credit note may refer to several original tax invoices; a list per invoice may be attached.

Can a credit note cross months? How long do you have?

The business must issue the credit note in the tax month the event happens: if the customer returns the goods in a month, issue it in that month. If there is a real need and it cannot be done in time, it may be issued in the following month. The law gives no later month than that.

The business issuing it: reduces its output tax in the month the credit note is issued
A VAT-registered buyer: reduces its input tax in the month it receives the credit note, even if that is not the month written on it

So a credit note issued this month may refer to a tax invoice from an earlier month. What counts is the month of the event, not the month of the original invoice.

Credit note vs debit note

Credit note (ใบลดหนี้): the right amount is lower than on the original tax invoice, for example a return or an overcharge; the seller's output tax goes down
Debit note (ใบเพิ่มหนี้): the right amount is higher, for example more goods sent than agreed or a price charged too low; the seller's output tax goes up

Both are issued in the month of the event and show the same items; only the direction of the amount differs.

See Debit Note in Thailand: Free Template.

Source: Revenue Code section 86/9: debit note (English)

Credit note example

This example uses made-up data. A shop sells 3 cotton shawls at 1,200 baht each to a company. The original tax invoice shows 3,600 baht, VAT 252 baht, total 3,852 baht. The buyer then returns 1 damaged shawl.

Value on the original tax invoice: 3,600 baht
Correct value: 2,400 baht; difference: 1,200 baht
VAT on the difference: 1,200 × 7% = 84 baht
Total credited, VAT included: 1,284 baht

The Excel file works out the difference, the VAT and the total credited; you fill in only the value on the original tax invoice and the items credited.

Credit notes when you sell in chat

When a customer reports a return or a short order in chat, ask for photos and the original tax invoice number in the same chat, so it is easy to find later
Issue the credit note in the month you take the return, then send the PDF to the customer in that chat
No tax invoice issued and no payment received yet? You need no credit note; correct the invoice instead. See the free invoice template
A retail shop that issues abbreviated tax invoices may issue credit notes too. Read about the short form in Abbreviated Tax Invoice in Thailand

Frequently asked questions

What is ใบลดหนี้ in English?

Credit note. ใบเพิ่มหนี้ is a debit note. The Revenue Department uses these words in the English version of the Revenue Code.

Can a business that is not VAT registered issue a credit note?

No. A credit note counts as a tax invoice, and a business that is not VAT registered may not issue any kind of tax invoice.

Does the buyer have to sign the credit note?

The law does not ask for the buyer's signature. The template has a 'received by' line in case you want proof that the customer got it.

Can I use, edit or add my logo to this template?

Yes. Use, edit and print it for free in your business.

Summary

A credit note is used when a sale that already has a tax invoice becomes smaller. Only VAT-registered businesses may issue one; it is issued in the month of the event, or the following month if there is a real need, and it refers to the original tax invoice with the difference and the VAT on it. Download the Excel, Word or PDF template above for free.

Credit Note in Thailand: Free Template