"Reverse and rebill" situations are very common in the Oil, Gas and Petrochem industry, especially in situations where goods are delivered in one reporting period but invoiced (or reversed and rebilled) in another reporting period because of formula-based pricing. There are a number of other situations where it is also necessary to "true-up" commercial invoice previously issued, and the GST/HST reporting and remittance requirements in these situations are counterintuitive.
Unwary businesses often face subsequent CRA assessments for taxes not collected, with the CRA taking the position that taxes were required to be collected on the issuance of both invoices unless proper credit note steps are taken.
