The concept of credit note is not used in Ukrainian legislation, and therefore, its legal status is not defined. However, it is widely used in the field of foreign economic activity (hereinafter – FEA). With the help of a credit note, the seller informs the buyer, in particular, about the provision of bonuses in the form of discounts or premiums. What are the conditions for using a credit note in Ukraine?
An essential condition of any economic agreement is the price (Art. 180 of the Commercial Code of Ukraine). Until recently, the price and total value of the agreement (contract) were considered a mandatory condition of the foreign trade agreement. This was indicated by clause 1.6 of the Regulations on the form of foreign economic agreements (contracts), approved by Order of the Ministry of Economy No. 201 of September 6, 2001. However, from August 7, 2020 this order expired and another document to replace it has not yet been adopted. In any case, we believe that in the case of concluding FEA agreements, special attention should be paid to the price. This will protect against possible misunderstandings and conflicts.
According to Ukrainian legislation, the price is set by agreement of the parties, and it can be changed after the conclusion of the agreement only in cases and on the terms established by the agreement or the law. In addition, after fulfilling the terms of the contract, a price change is not possible (Art. 626, 632 of the Civil Code of Ukraine).
Usually, the seller notifies the buyer by means of a credit note about changes in the terms of the FEA agreement (contract) regarding the compensation of the value of the delivered goods. It also does not have the prescribed form. It arrives to the buyer in the form of a letter of notification or a settlement document, which contains a notice to the buyer about the reduction of the amount of obligation (for example, in connection with the discount on goods).
Taking into account the above, we consider it appropriate to provide a condition for the possibility of providing a credit note in the FEA agreement (contract). And the very fact of providing a credit note can be issued as a written notice or an additional agreement to the contract.
If you do not provide for a condition to reduce the price or provide a bonus in the agreement itself or an additional agreement, the tax authorities will consider it as debt forgiveness or non-refundable assistance by a non-resident.
Therefore, the order of reflection of the transaction to obtain a credit note in the accounting of the importer depends on the conditions provided by the parties to the FEA agreement. Most credit notes are used when giving the buyer discounts or bonuses.
