E-invoices: how to cancel and correct them
A typo doesn’t mean you need to issue a new e-invoice – but incorrect mandatory details do. This article explains when you need to correct an e-invoice and what you need to bear in mind when doing so.
Introduction
Even with e-invoices, it can happen that an invoice is incorrect or incomplete. The correction process follows the same principles as before, with adjustments to suit the structured format. We’ll guide you through the process and ensure accurate accounting records.
This article explains when a correction is necessary, the two methods available, and what to bear in mind regarding VAT and during the transition period.
Not every change requires a correction
Before making a correction, it is worth asking whether it is actually necessary. Minor typing errors that do not alter the meaning of the invoice do not require a correction and do not jeopardise the input tax deduction.
The situation is different if mandatory details are incorrect or missing – such as an incorrect amount, an incorrect tax rate, a missing tax number or an insufficient description of the service. In such cases, the invoice must be corrected.
If the invoice has not yet been posted or paid, in some cases it can simply be replaced with a correct invoice. Once it has been posted or paid, the proper course of action is to issue a cancellation or correction referencing the original invoice.
Two options: cancellation or correction
There are two recognised methods for correcting an incorrect invoice. The Federal Fiscal Court recognises cancellation followed by re-issuance as a form of invoice correction.
You cancel the incorrect invoice using a cancellation invoice, which shows the amounts as negative figures and refers to the original invoice. You then issue a new, correct invoice with its own reference number.
This method is particularly straightforward for larger errors or amounts, as the old entry is closed and a new one is clearly opened. Many recipients prefer a single, coherent document rather than a subsequent correction slip.
You supplement or correct the incorrect details with an additional document that is clearly linked to the original invoice. The original invoice remains in place, and the correction document refers to it.
This approach is suitable for individual, clearly identifiable corrections. In practice, it is often more confusing than simply reissuing the invoice, which is why many businesses opt for the method of cancelling and re-invoicing even for minor errors.
In both cases, the original invoice remains on file and is not altered.
The reference to the original invoice
Regardless of the method used, the correction must clearly refer to the original invoice. This reference must include, at a minimum, the invoice number and the date of the original invoice.
Without this reference, the book entries are left hanging, which leads to time-consuming explanations in the event of a tax audit. A clear reference ensures that it remains clear which invoice has been corrected or cancelled.
A cancellation invoice also shows the amounts as negative. By offsetting them against the original invoice, the old receivable is set to zero for accounting purposes.
Correcting an e-invoice
If the original invoice was an e-invoice, the correction should also be issued as an e-invoice, provided this is a legal requirement. The cancellation and the new invoice are then also created in the structured format and refer to the original invoice.
During your transition period, corrections can also be made without an e-invoice, in the same way as when the invoice was originally issued. We will deal with what applies until when separately.
Your invoicing software usually treats the cancellation and the new invoice as separate transactions and automatically links them to the original invoice.
What to bear in mind regarding VAT
Errors in the VAT statement are a sensitive matter. If too much tax is shown, it may be payable under Section 14c of the German VAT Act (UStG) until the invoice is corrected.
Double tax reporting must also be avoided. If, in the case of a ZUGFeRD invoice, the visible and structured parts do not match, this may be treated as a second invoice – with the risk of a double tax liability.
In certain cases, a correction may have retroactive effect from the date of the original invoice, meaning no interest is charged. This requires the original invoice to have contained certain minimum details. We will work with you to clarify whether this applies in your case.
Common sources of error
- No reference to the original invoice: The cancellation or correction does not refer to the number and date of the original invoice. The link remains unclear and will be challenged during an audit.
- Original invoice altered: The incorrect invoice is subsequently overwritten. It must be archived unchanged; corrections must be made using a separate document.
- Completely cancelled over a minor issue: An invoice is cancelled and reissued due to a trivial typing error. If the meaning remains clear, no correction is often necessary at all.
- Duplicate tax declaration: With ZUGFeRD, the visible part and the data record differ. This may be treated as a second invoice and trigger a duplicate tax liability.
- Correction not sent: The recipient does not receive the correction in a timely manner. Their input tax deduction is delayed until they have received the corrected invoice.
Frequently asked questions
Do I have to cancel every incorrect invoice with a cancellation e-invoice?
No. Minor errors that do not affect the meaning do not require a correction. In the case of incorrect or missing mandatory details, you should correct them using a cancellation or a correction document.
What is the difference between a cancellation and a correction?
With a cancellation, you cancel the invoice using a negative cancellation invoice and issue a new one. With a correction, you supplement the details with an additional document. Both refer to the original invoice.
How should the reference to the original invoice be made?
At least via the invoice number and date of the original invoice. This ensures it is clear what has been corrected or cancelled.
Does the correction to an e-invoice have to be an e-invoice itself?
If the requirement applies, yes. If the original invoice was an e-invoice, the cancellation and the new invoice must also be in the structured format. During the transition period, corrections are also possible without an e-invoice.
Can I simply overwrite the incorrect invoice?
No. The original invoice must remain archived unchanged. Corrections must be made using a separate cancellation or correction document.
What happens if I have shown too much VAT?
An overstated VAT amount may be payable under Section 14c of the German VAT Act (UStG) until the invoice is corrected. It is therefore advisable to make a prompt correction with reference to the original invoice.
Does a correction have retroactive effect?
In certain cases, yes, if the original invoice contained certain minimum details. In that case, no interest is charged. Whether this applies depends on the individual case – we will check this with you.
Legal notice
This article provides an overview and is not a substitute for individual advice. The legal situation and its interpretation may change; the current status at any given time is decisive. Whether and how an invoice needs to be corrected, and whether it has retroactive effect, depends on the individual case.
If you have any questions regarding the correction or cancellation of an invoice, please contact us directly.
As at: June 2026