A mistaken invoice, a retro discount or a reduced work scope — an issued invoice cannot simply be "deleted". The correct instrument is a credit note that documents the reduction or cancellation of the original amount.
When to issue one
- the invoice contained an error in amount, quantity or rate;
- a discount was granted after invoicing;
- part of the works was not performed or goods were returned;
- the transaction was cancelled entirely.
What it must contain
The same details as a regular invoice plus a mandatory reference to the original invoice number and date. Amounts are shown negative or clearly marked as a credit note. For VAT payers it also corrects the VAT on both sides.