Handle invoice corrections properly

Issued an invoice with an error? Credit notes let you formally correct it with a full audit trail, linked back to the original.

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Linked to original invoice VAT automatically adjusted Immutable audit trail Business plan feature

Credit Note

CN-2026-001

Issued

Corrects original invoice

INV-2026-047 → CN-2026-001

Description	Amount
Correction — overcharged consulting hours	-€500.00

Subtotal -€500.00

VAT (21%) -€105.00

Total -€605.00

Credit note issued per Article 219, Directive 2006/112/EC

What happens when an invoice is wrong

Once an invoice is issued, it becomes an immutable tax document. You cannot simply edit it. EU VAT rules require formal corrections through credit notes that reference the original invoice.

The problem

✗ Editing issued invoices breaks your audit trail

✗ Deleting and re-issuing creates numbering gaps

✗ Informal corrections fail tax audits

The solution

A credit note formally corrects the original invoice while keeping both documents in your records.

Linked to the original invoice

Every credit note references the original invoice it corrects. Both documents stay connected in your records for a clear paper trail.

VAT adjustment done correctly

The credit note automatically calculates the correct VAT adjustment based on the original invoice, so your VAT reporting stays accurate.

Immutable audit trail

Once issued, credit notes are locked just like invoices. No silent edits, no missing records. Your accountant sees the full correction history.

How it works

Select the invoice, specify the correction, and Invoxo generates a properly linked credit note.

1) Select the invoice

Choose the issued invoice that needs correction. Invoxo pulls in the original details so you start from the right context.

✅ Original invoice details pre-filled
✅ Reference number linked automatically

2) Specify the correction

Adjust the amount, change line items, or correct the full invoice. You control exactly what gets corrected.

✅ Partial or full corrections
✅ Line-level detail preserved

3) Generate the credit note

Invoxo generates the credit note with the correct VAT adjustment, proper numbering, and a reference to the original invoice.

✅ VAT recalculated automatically
✅ Sequential numbering maintained

4) Both linked in your records

The original invoice and credit note are permanently linked. Your accountant can trace every correction back to its source.

✅ Full correction history visible
✅ Clean exports for your accountant

When you need credit notes

Common situations where a formal correction is the right approach.

Wrong amount invoiced

Overcharged or undercharged your client. A credit note corrects the difference without touching the original invoice.

Incorrect VAT applied

Wrong VAT rate or treatment on the original invoice. The credit note adjusts the VAT so your reporting stays correct.

Cancelled service

A service was invoiced but later cancelled. Issue a credit note for the full amount to formally reverse the charge.

Client dispute

Your client disputes part of the invoice. A credit note documents the agreed correction with a proper paper trail.

Why this works

Linked to the original

Every credit note references the invoice it corrects. Both documents stay connected so there are no loose ends in your records.

VAT automatically adjusted

The VAT correction is calculated from the original invoice. No manual recalculation, no mismatched amounts in your reporting.

Immutable records

Once issued, credit notes are locked. No silent edits after the fact. Your audit trail stays clean and trustworthy.

Accountant-ready exports

Credit notes appear in your exports alongside the invoices they correct. Your accountant gets the full picture without chasing documents.

Credit Notes – Common questions

Can I edit the original invoice instead of issuing a credit note? ⌄

No. Once an invoice is issued, it becomes an immutable tax document. Editing it would break your audit trail and violate EU VAT requirements. A credit note is the correct way to formally correct an issued invoice.

Does the credit note adjust my VAT reporting? ⌄

Yes. The credit note includes the correct VAT adjustment based on the original invoice. When you export your VAT data, both the original charge and the correction are reflected accurately.

Are credit notes available on the Pro plan? ⌄

Credit notes are a Business plan feature. The Business plan is designed for companies that need formal invoice correction workflows, advanced compliance features, and complete audit trails.

Can I re-issue a corrected invoice after a credit note? ⌄

Yes. After issuing a credit note to correct or cancel the original invoice, you can issue a new invoice with the correct details. The credit note and the new invoice will each have their own number in your sequential records.

Disclaimer: Invoxo provides tooling to support common invoicing and VAT workflows. For complex scenarios, confirm requirements with your accountant.