Difference

Is a credit note the same as cancelling or deleting an invoice?

Short answer

No. A credit note is a separate corrective document that adjusts the taxable amount and VAT of an existing invoice and refers to that invoice through BT-25. The original invoice remains in the accounting records and archive; its value is adjusted by the credit note.

Credit ≠ deletion

Invoice Remains

The original document shall not be cancelled, only its value corrected.

Section 25(1) letter (a)

Complete cancellation of delivery

Even in the case of a complete cancellation, the credit will be used, not the deletion of the invoice.

Audit trail

Two interlinked documents

The original invoice and credit form a complete record together.

BT-25

Legal link

The credit must refer to the invoice cancelled or modified.

Detailed explanation

The notion of ‘cancelling’ an invoice is misleading, as once an e-invoice has been delivered, it is technically impossible to recall or delete it. Instead, a new document (credit note) is created, which, together with the original invoice, forms a complete audit trail of the transaction and its correction. This also applies where the economic outcome is the complete cancellation of the entire original supply.

As set out in the Act

Section 25(1) of Act No. 222/2004 Coll. on VAT expressly provides for the adjustment of the tax base in the event of the full or partial cancellation of a supply of goods or services, whereby this adjustment is carried out by means of a document adjusting the tax base (a credit note), not by physically cancelling the original invoice.

Practical examples

The customer returns all the goods, and the supplier issues a credit note for the full amount of the original invoice.
The original invoice remains in the archive; the credit note supplements it with the adjustment.
The control statement will show both the original invoice and the credit note as separate items in the relevant periods.

Most common mistakes

“A credit note means that the original invoice no longer exists.” The original invoice remains a valid archived document.
“A complete cancellation of a supply is dealt with by deleting the invoice.” Under Section 25(1)(a) of the VAT Act, this is dealt with by issuing a credit note for the full amount.
“Cancelling an invoice and issuing a credit note have the same accounting effect as a cancellation in another system.” In e-invoice, this always involves a separate document with a reference number, not physical deletion.

Conclusion

A credit note is a corrective document linked to the original invoice, not its cancellation or deletion.

Legal basis

Act No. 222/2004 Coll. on VAT, Section 25(1)