💡 What is a Credit Note
A credit note is an official legal document you send to your client to confirm that a credit is being applied to their account. It is the correct way to cancel an invoice, issue a full or partial refund, or correct a billing error, without deleting anything from your accounting records.
⚠️ Important: never delete a sales invoice, especially if you have already filed the VAT return (if applicable) or if the invoice was sent with Peppol. In that case, you always have to create a credit note instead.
Common reasons to issue a credit note:
A client returned goods/rejected a service;
There was an under- or overpayment on the original invoice;
The original invoice contained a pricing, customer detail, etc. error;
Goods were damaged in transit;
A credit note adds a negative income entry to your books. This way, your accounting stays clean and traceable. For example:
Original invoice = +100€
Credit note for a partial refund = -50€
Total income = +50€
🚨 When are you NOT allowed to issue a credit note?
Issuing a credit note to cancel unpaid revenue is not automatically allowed in Belgium.
If your client has not paid you and you are in dispute with them, you cannot simply issue a credit note to cancel the revenue. The tax authorities may consider this an arbitrary cancellation of income.
A credit note for non-payment can only be issued when the non-payment is definitive, certain, and clearly established. This means you need legal confirmation that you will not be paid, for example:
A letter from a lawyer confirming the debt is irrecoverable
A confirmation from the curator in the case of your client's bankruptcy
If you are only partially paid in this context, you should issue a partial credit note for the unpaid amount only.
When in doubt, always consult your tax coach before issuing a credit note for unpaid invoices.
🧾 If you are Subject to VAT
When you are VAT-registered, your credit note must include and exactly match the VAT amount on the original invoice. This also gives you the opportunity to recover the VAT you already declared. A mismatch between the two will result in an incorrect correction in your VAT return.
When you create a credit note in Accountable, a legal note is automatically added to the document for the VAT authorities. It states that the VAT must be returned to the State to the extent it was initially deducted, this is what allows you to recover that VAT amount.
⚠️ Important: Date the credit note with the day you actually create it; do not backdate it to match the original invoice. Likewise, date the new corrected invoice with the day it is issued. The VAT correction is included in the VAT return for your current quarter, even if the original invoice belongs to an already-submitted, closed quarter or a previous calendar year. What must match the original invoice is not the date, but the reference to it: the credit note should clearly mention the original invoice number and date.
🏷️ If you are under the VAT franchise regime (small business exemption)
Under the franchise regime, you do not charge VAT on your invoices and you do not file periodic VAT returns. The same logic applies to your credit notes: no VAT is included.
Your credit note still needs to be a proper document that references the original invoice. Since you did not charge or collect VAT on the original invoice, there is no VAT to recover or adjust.
⚠️ Important: Your credit note is dated with the day you actually create it. What needs to match the original invoice is the reference to it (its invoice number and date), so your bookkeeping stays traceable and consistent with what was originally declared for that period.
📄 What must a credit note include?
When creating a credit note to cancel a previous invoice in Accountable, it's important that it reflects the exact conditions under which the original invoice was created.
Regardless of your VAT regime, every credit note should contain the following things which have to match those of the original invoice:
The date of issuance;
A credit note number (e.g. CN-2026-001) for tracking;
Your client's name, address, and VAT number (if applicable);
The number and date of the original invoice(s) being corrected;
The amount being credited;
The applicable VAT rate and amount -> for VAT-registered users only
💻 Web App - Step by Step
💡You can also create a credit note directly from an existing invoice. This allows you to copy each item from the original invoice onto the credit note:
Open the invoice -> click the pencil icon to edit -> select Create a credit note.
Go to Revenue in the left menu;
Click the 3-dot menu in the top right and select Create credit note;
Click Add a client and select the right client;
If this is your first credit note, choose whether to keep or change the proposed numbering format (e.g. YYYY-XXX);
Add the details of your credit note. Enter the amount as a positive value and Accountable will automatically treat it as a negative;
Scroll to the bottom of the invoice template and add the number and date of the original invoice(s) in the Notes and comments section;
Click Continue in the top right, then choose how to finalise it:
Save and prepare to send to email it directly from Accountable
Save and download PDF to send the PDF manually
Save and download UBL to send the UBL file manually
Save and make it recurring to send it on a regular basis
Save and quit if you still need to make changes
📱Mobile App - Step by Step
💡You can also create a credit note directly from an existing invoice. This allows you to copy each item from the original invoice onto the credit note:
Open the invoice -> tap the 3-dot menu in the top right corner -> Edit invoice -> select Create a credit note.
Go to the Revenue tab;
Tap the + icon, then tap Create credit note;
If this is your first credit note, choose whether to keep or change the proposed numbering format (e.g. YYYY-XXX);
Tap Client and select the right client;
Add the details of your credit note. Enter the amount as a positive value and Accountable will automatically treat it as negative;
In the Additional details section, add the number and date of the original invoice(s) in the Comments field;
Tap Preview credit note, then Create credit note;
Choose how to finalise it:
Prepare to send to email it directly from Accountable
View sharing options to share via your device
Save without sending if you still need to make changes
Any questions? Don't hesitate to reach out! 😊