Correcting Incorrect Invoices in Germany

Key Takeaways:

• An invoice is incorrect if it’s missing mandatory details under § 14 Abs. 4 UStG.
• Minor typos (like spelling errors) usually don’t require correction.
• You cannot claim VAT as input tax and expenses if the invoice is incorrect.
• Only the invoice issuer can correct an invoice.

This Is How You Do It

• Before sending the invoice, ensure all mandatory information is added.
• If you have sent an incorrect invoice:
  • Missing information → issue a correction document linked to the original invoice.
  • Major mistakes → Create a cancellation invoice and a new corrected invoice.
• Suppose you received an incorrect invoice. In this case, contact the supplier, point out the errors, and request a cancellation and a corrected invoice.
• To avoid mistakes when issuing invoices, use a GoBD-compliant accounting software. 
• Starting a business may feel overwhelming. This is why we have written a book to explain each step you have to take from setting up to running a successful business in Germany.

Table of Contents

Errors are inevitable when writing, processing, and documenting invoices daily. However, these inaccuracies may result in financial loss for you or your customer.

Hence, you (as a business owner) must find ways to avoid such errors in invoices, for example, by using a GoBD-compliant invoicing software.

What is GoBD compliance in Germany ->

But what can you do if you sent or received an incorrect invoice?

In this guide, you’ll learn what you can do if you sent or received an incorrect invoice. But before that, let’s understand what makes an invoice incorrect.

What is an incorrect invoice?

An incorrect invoice is an invoice that doesn’t contain all the mandatory information stated in § 14 Abs. 4 UStG.

List of mandatory information your invoice must contain ->

Minor typos, such as spelling errors in the customer’s name or address, don’t constitute critical mistakes.  

Example: Suppose you have a typo in your customer’s name, “Teresa Rupel” instead of “Teresa Ruppel.” In this case, you don’t need to take any action, provided you have mentioned the other details correctly on the invoice.

Why is it essential to correct incorrect invoices?

Suppose you receive an incorrect invoice. In this case, you won’t be able to claim the VAT paid as input tax when filing the VAT return.

In Germany, you pay VAT on all products and services. As a business owner, you can get this VAT back from the tax office. However, you need a valid invoice to do so.

The same applies if you send an incorrect invoice to your customer. In this case, your customer won’t be able to claim VAT back.

What is VAT in Germany? ->

Moreover, you need a valid invoice to claim business expenses. The tax office may reject an invalid invoice.

How do you correct invoices in Germany?

Customers are entitled to a correct invoice. This means if an invoice is incorrect, the invoice issuer must correct it (§ 31 Abs. 5 UStDV).

NOTE: The individual who received the incorrect invoice cannot correct it themselves. Only the invoice issuer can correct it.

The process for correcting an incorrect invoice varies depending on the stage it is in. It can be divided into three scenarios:

Scenario 1: You haven’t sent the invoice yet.

This is the simplest scenario. You identified the errors in the invoice before sending it to your customer. In this case, you can simply edit the existing invoice and correct it (if your invoicing software allows it).

Otherwise, you must follow the following steps.

• Delete the incorrect invoice.
• Create a new invoice. You can use the same invoice number you used in the incorrect invoice.
• Send the new (correct version) invoice to your customer.

Scenario 2: You have sent the incorrect invoice, but missed out on adding certain information

If you have deliberately or mistakenly omitted important information from an invoice, you can add it in a correction document (Berichtigungsdokument). 

Suppose you forgot to mention the reason for not applying the VAT in your invoice. In this case, you can do the following.

• Include the reason for not applying VAT in a correction document (Berichtigungsdokument).
• The correction document must include the original invoice number. This way, you and the tax authorities can link the correction document to the original invoice.
• Merge the correction document and the original invoice into a single file and send it to your customer. 

Scenario 3: You have sent the incorrect invoice, but made critical errors

You made some errors in the invoice. It could be incorrect information, or you may have failed to include specific details. And you sent the incorrect invoice to the customer.

In this case, here is how you move forward with the invoice correction.

1. Create and send a cancellation invoice (Stornorechnung). The cancellation invoice cancels the previous/original (incorrect) invoice. It has its own unique invoice number. 

What should a cancellation invoice contain? ->

2. Create and send a new correct invoice (Korrekturrechnung). It has its own unique invoice number. Also mention the original incorrect invoice and its date in the new invoice.

In the end, you’ll have three invoices

• Incorrect invoice
• Cancellation invoice
• Correct invoice

Cancellation and incorrect invoice balances each other out in your and your customer’s accounting.

Example:

• Suppose Sarah issues an incorrect invoice to her customer. Let’s say the invoice number is S0001.
• To fix the error, Sarah sends a cancellation invoice (Stornorechnung) to her customer. The invoice number of her cancellation invoice is S0002. The amount mentioned in the invoice is the same as in the incorrect invoice, but with a minus sign. Lastly, she must include a reference to the original incorrect invoice.
  • With reference to the invoice no. S0001 dated 01.07.2025, which is hereby cancelled.
• She sends a new invoice after correcting her earlier errors. The invoice number of the corrected version is S0003. In this invoice, Sarah must refer to the original incorrect invoice.
  • Corrected invoice, replacing the cancelled invoice S0001 dated 01.07.2025

It’s best to use a GoBD-compliant accounting software to create and send invoices. This software guides you and creates legally correct invoices. Thus, saving you a lot of unnecessary headaches.

What should a cancellation invoice contain?

The cancellation invoice should contain the following information.

• Clearly mark the invoice as “Cancellation Invoice” to distinguish it from a regular invoice.
• Unique invoice number and date of invoice creation.
• Sender and recipient name, address, and tax number/VAT ID.
• Reference to the original invoice by mentioning the original invoice number and date. 
• The invoice amount should be negative. This allows for reconciliation and settlement with the original invoice.
• Mention the cancellation reason. Example: a defective item, a change in price or quantity, or a breach of contract.

In short, the cancellation invoice is similar to the original incorrect invoice, except it has its own invoice number, a negative amount, and a reference to the original invoice.

How should you request a correct invoice from your supplier?

If you (as a buyer/service recipient) received an incorrect invoice, you must contact the supplier and request a new invoice.

Contact the service provider and mention the following.

• The error(s) in the invoice
• You’ll not pay the invoice till the provider corrects the error(s)
• Your request for a cancellation invoice (Stornorechnung) and a corrected invoice (Korrekturrechnung).

What are the most common invoice errors?

Here are the most common errors you may face when issuing invoices in Germany.

#1 Not mentioning the customer’s name as it is

Sometimes we get lazy and shorten the customer’s name. This is incorrect.

Suppose your client’s company name is “ABC Steurberatungs GmbH.” In this case, you must write the name as it is on the invoice.

Never shorten the name to “ABC GmbH”. “ABC GmbH” and “ABC Steuerberatungs GmbH” are two different company names.

#2 Freelancers or small business owners using a fictitious name on the invoice

If you are a freelancer or a small business owner, your company name is your first and last name. This is what you must mention in your invoices. You can’t use your company/website name.

Which legal forms can use a fictitious name in their invoices in Germany? ->

Example: Maria Gomez is a freelancer and runs a company called “Social Whiz.” When she issues or recieve an invoice, the invoice must contain

• her full name (Maria Gomez) or
• both her full name and company name.

If the invoice contains only her company name (Social Whiz), this is incorrect.

#3 Forgot to mention the postal code

In Germany, cities use the same street names in different regions. This is why you must mention the postal code. 

#4 Misnumbering your invoices

Every invoice you create (or receive) must have a unique invoice number. It allows you and the tax office to track your invoices and ensure no transaction is missed or unreported.

Here are some best practices for creating an invoice number.

• Use a set or series of numbers with letters and use them in order. Example: Sarah used the “S0001” as her first invoice number. In this letter, “S” represents her name’s initials, followed by a sequential number. The next invoice numbers for Sarah will be S0002, S0003, and so on.
• Use the date as your invoice number (YYYY-MM-DD-<sequential number>). Example: 2025-09-23-01.

You can use any format or create your own. But it should follow a pattern.

#5 Incomplete or incorrect service description

You must mention the service or product you sold to your customer in the invoice. The service or product description should be clear and concise.

The tax office doesn’t accept ambiguous descriptions.

Example: Sarah’s social media consulting business offers webinars and seminars. She had provided a webinar to a company in France. However, she mistakenly listed it as a seminar on the invoice. 

Since a webinar and a seminar are two different services, Sarah must cancel the original invoice and issue a new, correct invoice. 

#6 Not mentioning the discount in the invoice

Suppose you offer a discount to the customer. In this case, you must mention the discount in the invoice. 

Example: Sarah offers a webinar on leadership and charges 1000€ for this service. She provided a 10% discount to one of her customers.

Sarah issued an invoice and mentioned the service price as 900€ instead of 1000€. This is incorrect.

Sarah must mention the original price of the service, i.e., 1000€. In a new line, she must mention the 10% discount. Lastly, mention the calculated amount after the discount, i.e., 900€. 

#7 Miscalculating the invoice amount

It’s very common to make mistakes in calculating the invoice amount, especially when you are not using invoice software.

Here are a few common areas where founders make mistakes.

• Incorrectly adding the total invoice amount.
• Applying incorrect VAT rates.
• Miscalculating the discount.

Example: Sarah applied a 7% VAT rate instead of the 19% rate for her services. During advance VAT returns or audits, the authorities found this mistake. 

In this case, Sarah must pay the difference (12%) of the VAT amount from her wallet. Additionally, she may have to pay the penalties.

You can avoid this mistake by using a GoBD-compliant accounting software to create and send invoices.

#8 Not mentioning the reason behind the VAT exemption

Include the reason why you didn’t apply VAT in your invoice.

Suppose there is no reference to why you didn’t apply sales tax (VAT) to the goods or services provided. In this case, the tax office considers the invoice incorrect.

You may end up paying the VAT, a fine, or both.

Here are some reasons for VAT exemption

• Small business regulation applies to you
• You sell to a business outside Germany but within Europe. In this case, the reverse charge procedure applies.
• You sell products or services that are exempt from VAT.

How do you handle VAT when selling to businesses outside Germany? ->

List of VAT-exempt products and services ->

#9 Confusing cancellation invoice with credit note

New founders often confuse Gutschrift (credit note) with Stornorechnung (cancelled invoice). However, the terms have different meanings according to § 14 Abs. 2 Satz 2 UStG.

A credit note (Gutschrift) is an invoice document issued by the BUYER to the seller for the service they provided. 

Cancellation invoice (Stornorechnung) is an invoice sent to cancel an incorrect invoice. The SELLER sends this invoice to the buyer.

The misunderstanding arises from the fact that a credit note (Gutschrift) is also used in the following cases:

• Discounts: When you offer discounts or deductions that were not included in the original invoice.
• Partial returns: When customers return only part of the delivered goods, the invoice amount must be adjusted accordingly.
• Changes to services: If there is a price change in the service, or if you haven’t provided every service mentioned in the invoice.

This means “credit note” is used as 

• a Gutschrift issued by the buyer and
• an informal adjustment document from the seller.

This overlap leads to a misunderstanding.

When should you correct invoices?

You must proceed to correct incorrect invoices when:

• You (as a service provider) identify any errors in the outgoing invoice.
• Your customer identifies errors and sends you a letter requesting that you correct the invoice.

If you notice any flaws in your incoming invoices, you must contact your supplier and request corrections.

How to avoid making invoice errors?

The best way to avoid making invoicing errors is to use a GobD-compliant accounting software. The software ensures you apply the correct VAT rates and include all the legally required information on the invoice.  

Here are the best accounting software programs you can use.

• Accountable
• Lexware
• Sevdesk

You can read the detailed comparison of these accounting software here.

FAQs on correcting incorrect invoices