How to Correct or Cancel an E-Invoice in Germany
Mistakes on invoices happen. With paper invoices, a quick correction feels simple. With structured e-invoices, the correction process is more formal, but the core principle is the same: a credit note reverses the original, and a new invoice replaces it if needed.
When a correction is needed
Common reasons to correct an e-invoice include: incorrect VAT amount or rate, wrong line item amounts, wrong recipient details, or a duplicate invoice. In Germany, an invoice that includes incorrect VAT can create tax liability issues for both the issuer and recipient, so corrections should be made promptly.
Step 1: Issue a credit note (Stornorechnung)
A credit note reverses the original invoice. It should include:
- A new, unique invoice number for the credit note.
- A clear reference to the original invoice number and date.
- The same line items and amounts as the original, but with negative values to reverse the transaction.
- The same VAT treatment as the original (or the corrected VAT if the original had the wrong rate).
- A description that clearly identifies this as a cancellation or correction of the original.
Step 2: Issue a corrected invoice (if needed)
If the original invoice contained an error rather than being entirely wrong, follow the credit note with a new, correctly issued invoice. This new invoice should have its own invoice number and correct all the errors from the original. Do not reuse the original invoice number.
Format requirements
Both the credit note and the corrected invoice must be in a compliant structured e-invoice format (XRechnung or ZUGFeRD) if they fall under the German e-invoicing mandate. A PDF correction is not sufficient for transactions that require a structured e-invoice.
Communicating with the recipient
Notify the recipient promptly when issuing a correction. Send both the credit note and the new invoice together and explain what changed. If the recipient has already processed the original in their accounting system, they will need to process the correction accordingly.
This article is general information only and does not constitute tax or legal advice. Consult a Steuerberater for your specific situation. E-Rechnung helps you read and validate XRechnung and ZUGFeRD files on your iPhone. For guidance on common errors in e-invoices, see the article on common e-invoice mistakes for German freelancers.
Common questions
- How do I cancel an invoice in Germany?
- Issue a credit note (Stornorechnung or Gutschrift) that references the original invoice and reverses all line item amounts with negative values. If the invoiced service was provided and the error was only in the invoice details, follow the credit note with a corrected invoice.
- Can I just edit and resend an e-invoice to correct it?
- No. Once an invoice has been issued, it should not be altered and reissued with the same number. The standard process is to cancel it with a credit note and issue a new invoice with a new number. This creates an auditable paper trail for both parties.
- Does the credit note also need to be in XRechnung or ZUGFeRD format?
- Yes, if the original transaction was subject to the e-invoicing mandate, the credit note must also be in a compliant structured format. A PDF correction does not satisfy the structured e-invoice requirement.