Cancellation invoice: How to correct invoices
Cancellation invoices are essential when an invoice that has already been issued needs to be corrected. They make the original Reckoning Invalid and allow the invoice to be correctly reissued. Errors, returns or changes in prices are common reasons why a cancellation invoice is required. Certain legal requirements must be observed in order to safely and correctly cancel an incorrect invoice.
What is a cancellation invoice and when is it needed?
A cancellation invoice is necessary if an invoice needs to be corrected retrospectively, for example due to errors, cancellations of services or returns of goods. If the invoice has already been paid, it can no longer be changed, but must be canceled by a cancellation invoice and submitted by a New Bill Be replaced.
Contents of a cancellation invoice
The content of a cancellation invoice is the same as that of a normal invoice, but contains one important difference: It only shows negative amounts. According to §14 UStG, the following information is required:
- Name and address of the service provider and the service recipient
- Tax number or sales tax ID of the service provider
- Invoice number and date of issue of the cancellation invoice
- Reference to the original invoice (e.g. by providing the original invoice number and date)
- Net Amount, Tax Amount, and Gross Amount
In addition, reference must be made to the negative amount and the adjustment of the amounts originally calculated.
What are the special features of the cancellation invoice?
Although the cancellation invoice contains similar information as a regular invoice, the main difference is that it shows negative amounts and cancels the original invoice. Another important aspect is that the correction may only be made by the invoicing party.
A customer may not issue their own cancellation invoice.
What must be considered when invoicing a cancellation?
There are a few key points to consider:
- Errors must be corrected in good time, particularly when they relate to mandatory information.
- The term “credit” is often mistakenly used instead of “cancellation invoice,” which can lead to misunderstandings. The correct terminology is important to avoid tax problems.
- A cancellation invoice must always be combined with a new, corrected invoice in order to complete the correction in accordance with the law.
These retention periods apply to cancellation invoices
The original invoice, the cancellation invoice and the new corrected invoice must At least 10 years Be kept for a long time to ensure proper accounting and to be able to present all necessary documents during tax audits.
Are there time limits for a cancellation invoice?
There is no legal limit to how far back an invoice can be canceled and corrected. However, it is important that the correction is made in good time and that tax requirements are met. A retroactive correction could have tax consequences if it is made in a later year and the input tax deduction is no longer recognized.
Conclusion
Cancellation invoices are an essential tool in Invoicingto correct errors and ensure tax correctness. It is important to comply with all legal requirements and carry out the correction properly to avoid potential tax problems.