Credit note

A credit note is issued by the supplier when an invoice has to be corrected downwards: goods were returned, a price was agreed lower, a service was not delivered in full or the original invoice contained a mistake. It refers to the original invoice, states the difference and adjusts the VAT accordingly, so both parties correct their VAT returns for the period in which the credit note is issued.

EU law treats a credit note as an invoice for VAT purposes, so it needs the same mandatory content plus a reference to the document it corrects. Some countries also use a corrective invoice that restates the whole document; the effect is the same. Increasing an invoice is done with a debit note or a supplementary invoice. Kontevia issues credit notes linked to the original invoice and reflects them in the VAT summary automatically.