If the invoice issuer - the service provider - has made an error in an invoice that has already been sent, this is certainly not an unsolvable problem. Incorrect details of the parties involved, or the amount, are quite common and even the most experienced accountant can sometimes get it wrong. That is why there is a so-called Correction Tax Document.
A corrective tax document, formerly known as a credit note and a debit note, is used to correct an invoice. The correcting tax document is issued by the supplier of the services or goods, i.e. the supplier who issued the original invoice.
A corrective invoice can be issued in plus or minus amounts depending on whether the original amount is reduced or increased. And as the name suggests - the corrective tax invoice is addressed to VAT payers.
Like any other tax (or non-tax) document, a corrective tax document also has its prescribed requirements.
Particulars of a corrective tax document:
The customer and supplier details are the same as on the original invoice
Registration number of the original invoice
Registration number of the corrective tax document
Reason for the correction (for InvoiceOnline.com it is written in the notes at the bottom)
Difference (if any) between the original and corrected tax base
Difference between original and corrected tax
Difference in amount
Date of the taxable event corrected
Confirmation of the customer
In the past, it was also necessary for the customer to confirm the issue of a correcting tax document (or bill of exchange/credit note), which is no longer necessary. We recommend only having some form of confirmation that the corrected tax document has been delivered to the customer at all times.
With InvoiceOnline.com, you just need to fill in the new tax amount, for example, and the remaining parts are automatically calculated as with other types of documents. This way, you will not only save time, but you will also have all the details on the document.
