Refunds, Returns and Discounts: Credit Notes Explained
Published · Last checked 18 October 2026 · 4 min read
A customer returns a broken kettle. Another was overcharged. A regular customer gets a discount after the sale. With fiscalisation, you cannot simply cancel or edit the original receipt: ZIMRA already has it. Instead, you issue a credit note or a debit note. Here is how.
The golden rule
Once a sale is fiscalised, never delete, cancel or reprint a changed version of the receipt. ZIMRA has the original. Any change after the sale is recorded as a new fiscal document that points back to it.
Credit note or debit note?
| What happened | Document to issue | Effect |
|---|---|---|
| Customer returns goods for a refund | Credit note | Reduces the sale and the VAT |
| You overcharged and refund the difference | Credit note | Reduces the sale and the VAT |
| Discount given after the sale | Credit note | Reduces the sale and the VAT |
| You undercharged and bill the extra | Debit note | Increases the sale and the VAT |
ZIMRA's guidance specifically says that discounts given to customers must be recorded through credit or debit notes.
What a credit note must include
- A reference to the original fiscal receipt or invoice it corrects
- The items and amounts being credited (no more than what is left of the original sale after any earlier credit notes)
- The VAT being reversed
- A short reason (for example "goods returned – faulty")
- The buyer's details, if the original sale was to a business
- Its own QR code and verification code from FDMS
ZIMRA's system also rejects a credit or debit note that is in a different currency from the original sale, uses VAT rates that were not on the original, or refers to a sale more than 12 months old.
Since June 2025, buyer details must go to FDMS with credit notes and debit notes, not only invoices.
Why it matters for your VAT
- A credit note lowers your output VAT, so you pay less VAT for that period.
- The credit notes you issue now feed into TaRMS automatically from FDMS.
- For your business customer, your credit note lowers the input tax they can claim. Getting it right keeps both returns matching.
Mistakes that cause problems
- Voiding a receipt in the POS without issuing a credit note.
- Refunding cash "from the drawer" with no document at all.
- A credit note that is larger than the original sale.
- Issuing a fresh, lower invoice instead of crediting the old one. Now ZIMRA sees two sales.
- Missing the buyer's TIN on a credit note for a business customer.
A simple process for the shop floor
- Find the original receipt (by number, date or QR code).
- Select the items being returned or the amount being refunded.
- Enter the reason.
- Issue the credit note and give the customer a copy.
- Refund the money in the same currency as the original sale; the credit note itself must be in that currency.
How TaxComply helps
In TaxComply, refunds always start from the original receipt. The POS issues the credit note, links it to the sale, and blocks credits larger than what was sold. Businesses across Zimbabwe use it to handle refunds and returns without putting their compliance at risk. Get started at taxcomply.co.zw or email sales@taxcomply.co.zw to talk to our team.
Related: Fiscal day and Z-report in plain English
Frequently asked questions
Can I cancel a receipt if the cashier made a mistake a minute ago?
If it has been fiscalised, issue a credit note and ring up the correct sale. Do not delete it.
Can I give a credit note without a refund, as store credit?
Yes. The credit note records the reduced sale; how you settle it with the customer is a separate business choice.
Do I need the customer's ID for a refund?
For a walk-in consumer, no. For a business customer, capture the same details as on the original invoice.
Refunds done right, every time
Credit notes that start from the original receipt and can never exceed what was sold.