In every business or trade, there are always going to be mistakes for one reason or another. And the important thing is how to rectify them. This also applies to invoices. What happens if you make a mistake on an invoice? You have to issue a corrective invoice.
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When to issue an amendment invoice?
From an error in the customer company name, the amount or miscalculated VAT, not having included data that is relevant for the accounting document, or directly having made a return. These are the reasons why you should issue an amendment invoice that corrects the original.
And if we look at what the Inland Revenue itself says, their exact words are as follows:
- In cases where the invoice does not meet any of the requirements set out as mandatory in Articles 6 and 7 of the Regulation governing invoicing obligations.
- When the circumstances giving rise to the change in the VAT base established in Article 80 of Law 37/1992 have occurred.
And if a mistake is made in issuing an amendment invoice, a new one should be issued. As with an ordinary invoice, the amendment cannot be changed either.
The corrective invoice and VAT
If your company is in any of the above cases, what you should never do is modify the original invoice and “correct” it. You must always issue a corrective invoice, which includes all the correct information, or which indicates the refund.
In the case of VAT, specifically – which is always the most worrying and the issue to be taken care of – there are two main reasons why a rectifying invoice is issued:
- When the VAT payments have been incorrectly determined.
- Because the original invoice has remained unpaid, and the company had already declared and paid the VAT to the Treasury. Issuing an amendment invoice is how you can recover it.
In both cases, the deadline for issuing an amendment invoice for VAT is one month from the issue of the original. And from the moment the rectifying invoice is issued, we have another month to notify the Tax Office in writing.
How to make an amendment invoice
In the event that we have to modify the total amount of the original invoice, the corrective invoice must be issued within a maximum period of 4 years from the date of accrual. That is, the date on which the taxable event subject to tax was carried out.
Do not forget that you must notify the tax authorities in writing of the change in the amount (which can be either a positive or negative amount), as well as attaching a copy of both invoices: the corrective invoice and the original.
In a model amendment invoice, it is essential to always include the following information, to avoid penalties:
- The number and date of the original invoice, so that it can be identified.
- It will be numbered differently from the original, and in a different series as well.
- It is compulsory to state that it is a corrective invoice. Ideally, this should be indicated in the header.
- It is essential to clearly indicate the reason for issuing it and to indicate what has been rectified: an informative data, a calculation in the tax, add information..
And of course, all the information that by default must be included in an ordinary invoice:
- Date of issue
- Due date
- Tax information of both the issuer and the recipient
In the case of lack of data or wrong information about the companies, the ideal is that it does not happen, because for the Treasury, the most appropriate is to receive corrections that refer to amounts, not so much to administrative changes.
Negative correction invoices: yes or no?
These are made when an order is returned. As long as it is a product, something physical, it will be possible to justify its issuance easily. However, in the case of services, it is not advisable to use negative amendment invoices, as it is more complicated to justify the return to the Tax Office.
Conclusion
It’s OK if you make a mistake on an invoice, because it can be rectified, but you must take into account the deadlines and the mandatory information to be added to the document, to avoid penalties or requirements from the Tax Office.
When it comes to managing your accounts, it is always advisable not only to have an expert accountant, whom you can contact if you have any doubts, but also an accounting and invoicing management system or software, which will help you to carry out these tasks.
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