Credit and debit notes: correcting an invoice the right way

Once a tax invoice is issued, you don't edit or delete it. Any later change goes through a note that refers back to the original invoice.

Credit note

Reduces the value of the original invoice. Use it for:

• Returned goods.
• A discount agreed after the sale.
• A price charged by mistake.

It reduces your output VAT in the period you issue it.

Debit note

Increases the value of the original invoice — for example, an extra charge or a price that was undercharged. It increases your output VAT.

What each note must show

• A reference to the original invoice number and date.
• The reason for the change.
• The adjusted value and VAT amount.

Common mistake

Issuing a new invoice instead of a credit note, or forgetting to record notes in the right period. Both distort your return and get flagged in inspections.