Key takeaways
- Issue a credit note rather than editing or deleting a sent invoice.
- Always reference the original invoice number and date.
- If the invoice included tax, the credit note reverses the tax too.
- A credit note is not the same as a refund — it may be offset against future invoices.
Fields to include
- Title "Credit Note", its own number and date.
- The original invoice number and date.
- Seller and buyer details.
- The items or amounts being credited and the reason.
- Tax reversed and the total credit in the same currency as the invoice.
Common reasons to issue a credit note
- Goods returned or damaged.
- Overcharge or pricing error.
- Post-sale discount or rebate.
- Order cancelled after invoicing.
Tax and invoicing rules differ by country and change over time. Confirm current requirements with your accountant or the tax authority where you are registered.
Frequently asked questions
Can I just delete the wrong invoice?
No. Deleting invoices breaks your numbering and audit trail. Issue a credit note, then a corrected invoice if needed.
Does a credit note need a tax number?
If the original invoice showed your tax number and tax amount, the credit note should too.