It has happened to everyone that an invoice was created that had an error. What should should you do with this invoice now? Do you have to cancel it? Does the customer need a new invoice or just an invoice correction?
Essentially, every customer has the right to receive a corrected invoice. However, how do you correct an incorrect invoice correctly?
Not every typing error necessarily needs to be corrected. However, if the error concerns the mandatory information of an invoice according to §14 para. 2 no. 2 of the Value Added Tax Act (UStG), it is necessary to correct the incorrect document.
But is it necessary to create a credit note, a cancellation invoice or an invoice correction?
You also do not need to worry about the sign of the credit notes. In our opinion, the term “credit memo” is sufficient to indicate that the turnover is negative. There are no legal requirements here.
A change in the law in 2013 has led to some confusion here, so that it was unclear whether one of the designations for the correction documents could lead to the fact that the invoices, or the corrected invoice could no longer be entitled to deduction tax. However, an application letter from the Federal Ministry of Finance dated 25.10.2013 is available on the issue, in which the following is written:
„(…) Die im allgemeinen Sprachgebrauch bezeichnete Stornierung oder Korrektur der ursprünglichen Rechnung als Gutschrift (sog. kaufmännische Gutschrift) ist keine Gutschrift im umsatzsteuerrechtlichen Sinne. Wird in einem solchen Dokument der Begriff „Gutschrift“ verwendet, obwohl keine Gutschrift im umsatzsteuerrechtlichen Sinne nach §14 Abs. 2 Satz 2 UStG vorliegt, ist dies weiterhin umsatzsteuerrechtlich unbeachtlich. Die Bezeichnung „Gutschrift“ führt allein nicht zur Anwendung des §14c UStG. (…)“
Accordingly, the document type “Credit note” can also be renamed to “Invoice correction”, “Reversal invoice” or even “Invoice change”, but it is only a recommendation and not an obligation to follow.
