An incorrect invoice is not uncommon in everyday business. Whether transposed digits, an incorrect tax rate, or missing mandatory information – in every case, the question arises: Does the invoice have to be cancelled, reissued, or simply corrected? And what exactly must be observed from a legal perspective?
This article provides a clear overview of the options for correcting invoices, the relevant provisions of the German Value Added Tax Act (UStG), and shows how you can work legally compliant and efficiently with easybill.
What is an invoice correction?
An invoice correction refers to the amendment of an invoice that has already been issued if it is incomplete or incorrect. This can relate to purely formal aspects – such as a missing tax number – or content-related errors, for example an incorrect description of the service or an incorrect amount.
Under Section 14 (4) UStG, an invoice may only be considered valid if it contains certain mandatory details. If these are missing or incorrect, a correction is necessary in order, for example, not to jeopardize the right to deduct input tax.
When is a correction required?
Not every small typo requires a full correction. What matters is whether the invoice meets the legal requirements. Corrections are required in particular for errors in:
- Name or address of the invoice issuer or recipient
- Tax number or VAT ID
- Invoice number or issue date
- Description of services, quantity, or price
- VAT rate or amount
- Date of delivery or performance of the service
A formal correction is permitted as long as it clearly refers to the original invoice and does not constitute a new invoice. In other cases, cancellation and reissue are necessary.
Two ways to correct an invoice
1. Formal correction
If an invoice is incorrect but essentially exists and is understandable (e.g., incorrect address), it can be corrected. To do so, a correction document is created that refers to the original invoice and contains the corrected information. The original document remains unchanged.
Important: The formal correction does not have retroactive effect on the original advance VAT return period (Section 14 (4) sentence 4 UStG).
2. Cancellation invoice
If an invoice contains serious errors—such as an incorrect tax amount or incorrect services—a cancellation invoice must be issued. In Easybill, a cancellation invoice can be created in just a few clicks by opening the incorrect invoice and selecting “Create cancellation”. Finally, the cancellation is displayed together with the original invoice and can be edited and finalized.
Credit note or invoice correction?
If the customer has already paid, the invoice cannot simply be corrected. In this case, the correction is made via a commercial credit note, especially if a partial amount is to be refunded—for example, in the case of discounts or returns.
Caution: The term “credit note” in the commercial sense must not be confused with the VAT-law credit note (Section 14 (2) sentence 2 UStG). The latter exists only if the recipient of the service issues the invoice—e.g., for commission statements. In this case, the invoice must include the wording “credit note”.
Mandatory information for invoice corrections
Regardless of whether an invoice is reissued or only corrected: the mandatory information pursuant to Section 14 (4) UStG applies. This includes, in particular:
- Full names and addresses of both parties
- Tax number or VAT ID of the issuer
- Date of issue
- Unique, consecutive invoice number
- Type and scope of the service or delivery
- Date the service is provided
- Net amount, tax rate, and tax amount
- Reference to tax exemption (if applicable)
- For credit notes: the term “credit note”
A violation of these requirements can jeopardize input tax deduction or lead to tax disadvantages.
How easybill helps with invoice corrections
With easybill, invoice corrections can be implemented efficiently and in compliance with the rules. Depending on the type of error, different options are available to you:
- Cancellation invoice: An invoice can be cancelled in just a few clicks, ensuring complete documentation.
- Credit notes: Both classic and recurring credit notes (e.g., for commission statements) can be generated easily—directly from a project if needed.
- Invoice correction for open invoices: Invoices that have not yet been posted can be corrected directly without the need for cancellation.
In addition, easybill ensures compliance with the GoBD through audit-proof archiving of all documents and enables a reliable audit trail between service and billing.
Invoice correction for e-invoices
How can I correct an incorrect e-invoice?
An e-invoice cannot simply be changed – just like a traditional invoice. You must issue a cancelling correction invoice or credit note that clearly refers to the original invoice. It is important that the correction is also made in the structured e-invoicing format if the original invoice was issued electronically.
Can I edit an e-invoice retrospectively and send it again?
No. Once an e-invoice has been sent, it is considered transmitted and may no longer be changed. Changes are only permitted via a new, corrective invoice. This ensures traceability and meets the requirements for GoBD-compliant archiving.
Does a cancellation invoice also have to be created as a structured e-invoice?
Yes. If you operate in the B2B or B2G sector and your original invoice was transmitted as an e-invoice, the correction or cancellation must also be made in the same structured format (e.g. XRechnung or ZUGFeRD).
What should be considered when making a correction under the small business status?
Small business owners must also ensure, when correcting an invoice, that they include the note on VAT exemption under Section 19 of the German VAT Act (UStG). The correction invoice should clearly state the original invoice number and explain the change in a traceable way.
What does a correct correction invoice look like?
A proper correction invoice contains:
- The designation as “Correction to invoice no. …”
- All mandatory details of a regular invoice
- A negative line item to cancel it out (if necessary)
- If applicable, a new line item for the correct service
- The reason for the correction (e.g. “Incorrect billing address”, “VAT shown in error”)
How can I ensure that my correction invoice is also archived in a GoBD-compliant manner?
Use an invoicing program such as easybill that supports corrections and cancellations in the structured format and automatically stores them in an audit-proof manner. This way you maintain traceability and meet all tax requirements.
What happens if I don’t correct an incorrect e-invoice?
Uncorrected errors can lead to formal objections during a tax audit and, in the worst case, jeopardise your business partners’ input tax deduction. Therefore, incorrect e-invoices should be corrected promptly and properly.
