Installment Termination Could Deduct Excess Sales Tax
If a company agrees on the sales in installment, however, the buyer terminates the purchase and stops paying the rest of the purchase, the company could do the following to adjust the excess amount of sales tax.
- If company issues sales invoices by installment frequency: no excess sales tax occurs and may stop issuing sales invoice once the termination occurs.
- If company issues one sales invoice in full-amount on the first installment date: could prepare the supporting documents to the tax bureau to claim the excess sales tax.
If company retrieves the goods/machine after the termination and makes new sales to a new client, it is considered as a new sales thus new sales invoice should be issued.
