---
title: "Cancellation invoice: reversing incorrect invoices"
date: 2025-07-23
author: "Benjamin Klein"
featured_image: "https://www.easybill.de/wp-content/uploads/hero-10.png"
categories:
  - name: "Receipts"
    url: "/en/category/receipts.md"
  - name: "Taxes"
    url: "/en/category/tax.md"
---

# Cancellation invoice: reversing incorrect invoices

A classic case from everyday business: your customer cancels an order at short notice, but the invoice has already been created and sent. To ensure the amount isn’t mistakenly posted, you need a legally compliant solution: a cancellation invoice.

## What is a cancellation invoice?

A cancellation invoice is a document you use to completely reverse an already issued [invoice](https://www.easybill.de/en/guide/the-10-components-of-an-invoice/). It is used whenever the original invoice was incorrect—for example due to transposed digits, an incorrect tax rate, or because the service was not provided as planned.

People also often refer to a [corrective invoice or invoice correction](https://www.easybill.de/ratgeber/rechnungskorrektur). This generally means a revised version of the original invoice. However, such a correction is only permitted if the original invoice has neither been posted nor processed or paid by the customer. Otherwise, you must issue a cancellation invoice and, if necessary, subsequently [create a new invoice](https://www.easybill.de/rechnungen-online-erstellen).

It does not replace a new invoice; rather, it renders the old invoice ineffective in your accounting. If the service is still to be billed, you then issue a new, correct invoice.

## When do you need a cancellation invoice?

Typical cases include:

- The customer withdraws from the purchase
- A service was not provided at all
- Incorrect amounts, tax rates, or line items on the invoice
- The invoice was accidentally issued twice

> **Important:** A cancellation invoice is always required if the original invoice has already been posted or further processed and must be reversed retroactively. A simple correction is no longer sufficient in that case.

## Cancellation invoice or credit note? The difference

The terms cancellation invoice and [credit note ](https://www.easybill.de/ratgeber/gutschrift)are often used interchangeably, but they are not identical:

**Cancellation invoice:**

- Completely reverses an incorrect invoice
- Must clearly refer to the original invoice
- Mainly used for formal errors or cancelled orders

**Credit note:**

- Is an independent refund
- Used for discounts, returns, or goodwill payments
- Has no direct reference to a specific invoice

So if you want to cancel an incorrect invoice, use a cancellation invoice. If, on the other hand, you want to credit a customer money, for example for a complaint, a credit note is the tool of choice.

## Mandatory information on a cancellation invoice

The general requirements for invoices in accordance with Section 14 of the German VAT Act (UStG) also apply to cancellation invoices. Your cancellation invoice must include:

- VAT separated by tax rates
- The designation “cancellation invoice”
- Your and your customer’s address
- Your tax number or VAT ID
- A new, unique invoice number
- The issue date
- A clear reference to the cancelled invoice (incl. number and date)
- Description of the cancelled services or goods
- The original amounts with a negative sign

Optional but recommended is also the reason for the cancellation. This keeps the process traceable.

![](https://www.easybill.de/wp-content/uploads/image-19-747x1024.png)

> ## **Create cancellation invoices with easybill**
> 
> Would you like to create cancellation invoices easily and in a legally compliant way? With easybill, you can create cancellation invoices very easily directly from an existing [invoice](https://www.easybill.de/en/guide/the-10-components-of-an-invoice/) or [e-invoice](https://www.easybill.de/e-rechnung). You simply select the relevant function, and the system generates a correct cancellation document that meets all legal requirements. The link to the original invoice is stored automatically, so you’re also on the safe side in terms of accounting.
> 
> If you have stored your own texts or templates for your cancellation invoices, you can also adopt them. Changes to customer data are also possible – all steps remain audit-proof documented.
> 
> [Try it for free now](https://app.easybill.de/signup?lang=de)

## GoBD and retention obligations for cancellation invoices

Cancellation invoices must be archived just like regular invoices – for ten years. The GoBD requirements apply. This means:

- The cancellation invoice must be stored in an unalterable manner
- Any change or re-issuance must be documented
- The link to the original invoice must be clearly traceable