The 12th Electronic Invoicing Study reports that over 2.6 billion electronic bills moved through digital billing platforms between 2012 and 2024. While most requested or documented payments, some confirmed amounts owed to customers. Under those circumstances, we are talking about credit notes, which are very common in online order send backs: in 2024, 57% of Spanish shoppers who made web purchases processed at least one return.

Returning a purchase is among many situations in which a company might need to revise the balance on an invoice it has already issued, making it important to know how to record these adjustments through credit notes. In this guide, we will see what they are and how to prepare them in accordance with legal requirements.

What’s in this article?

• What is a credit note?
  
• Differences between credit notes and corrective invoices
  
• When to issue a credit note in Spain
  
• Requirements for credit notes in Spain
  
• How Stripe simplifies the management of credit notes
  

What is a credit note?

A credit note is a type of corrective invoice that records a reduction in the tax base, whether due to a discount, an error in the initial bill, or nonpayment. If the note reflects a customer’s overpayment, the issuer can apply the sum to future statements or provide a refund as a single transaction.

Differences between credit notes and corrective invoices

Since credit notes are a subcategory of corrective invoices, they share some characteristics: both are used to adjust earlier bills and must contain virtually the same details. Yet, there are key differences:

• Identification of the previous invoice
  When the change in the tax base is due to a purchase volume discount, it is not necessary to identify the previous bill in the credit note; it is sufficient to specify the time period, as established in Article 15(4) of Royal Decree 1619/2012. Conversely, in corrective invoices, it is mandatory to refer to the original.

• Type of change
  A credit note lets you adjust the figure downward (i.e., reduce it), while a corrective invoice allows upward adjustments and additional amendments, such as the invoice number, date, or customer name.

• Positive or negative amount
  Since the credit note reflects a balance in favor of the client, the sum is always negative. But, in corrective invoices, the amount can be positive or negative depending on the revision applied.

When to issue a credit note in Spain

There are several situations where a company has a legal obligation to issue a credit note in the country. Let’s take a look at them:

• Price changes that favor the customer
  It must be generated upon a price change that benefits the customer, thereby reducing the initial tax base. This happens once bulk-order discounts, rebates, or general bonuses are applied, as well as when the price updates for varying reasons, such as purchase returns.

• Invoices that are totally or partially uncollectible
  If an invoice sent by a company is ultimately deemed legally uncollectible, they are required to issue a credit note in order to recover the value-added tax (VAT) it charged on that sale. Below are the main requirements for a bill to be considered irrecoverable:

  • It needs to involve a professional client, such as a firm or a self-employed person; if it is a private client, the tax base of the invoice has to be greater than €50.
    
  • At least 12 months must pass from the date VAT accrued. For professional clients with high transaction volume, the rules allow a reduction to six months if the issuer’s turnover did not exceed €6,010,121.04 in the previous calendar year.
    
  • The nonpayment has to be reflected in their accounting records.
    
  • The creditor must have formally claimed the settlement through judicial or notarial channels.
    

• Return of packaging
  If a client brings back reusable packaging items after use (such as pallets from a DIY store or glass containers from a restaurant), the supplier must prepare a credit note to document the discount for the return.

• Insolvency proceedings
  When a customer who received an invoice enters bankruptcy proceedings, the debt becomes uncollectible, and the company is required to produce a credit note to recover the VAT charged. Between January and November 2025, insolvency cases increased by 5.6% year-on-year, which had directly impacted the 5.8% of business insolvencies recorded in November of that period.

Except for credit notes related to insolvency proceedings, whose deadlines the Insolvency Law sets, the issuer has to create one as soon it becomes aware of the circumstances requiring it, provided that no more than four years have passed since the following situations occured:

• The accrual of VAT on the invoice, that is, the moment once the obligation to declare it arose
  
• The change in the VAT tax base for any of the reasons indicated above
  

Failure to issue a note when required by law could result in penalties, including fines ranging from 50% to 100% of the amount of VAT incorrectly declared.

Requirements for credit notes in Spain

The steps for creating a note closely follow those for creating any other type of invoice in Spain, though certain nuances require attention. Below, a summary follows of the information you must include upon issuing credit notes in your business:

• Issuer details: Company name or full name, address, and Tax Identification Number (NIF) of the company or self-employed person issuing the invoice.
  
• Customer details: Provide the full name, address, and their NIF.
  
• Sequential and independent serial number: To reflect that it is a corrective invoice, a specific serial number is assigned with sequential numbering independent of the invoice subject to amendment.
  
• Issue date: Enter the date you create the credit note.
  
• Original invoice details: To help identify the original invoice, include its number and issue date.
  
• Reason for the correction: Brief description of the reason that justifies the downward adjustment in the amount.
  
• Tax base: Enter the negative used to calculate VAT.
  
• Tax rate: VAT rate percentage applied to the transactions documented in the credit note.
  
• Tax liability: Negative VAT figure proportional to the rectified tax base, depending on the rate applied or whether personal income tax (IRPF) withholding is applicable.
  
• Total amount: Sum of the tax base and liability.
  

Once you have prepared the credit note, the final step is to give it to the customer. It is also important to keep a copy to comply with filing obligations, as you will need to include it in the quarterly VAT return Form 303 to justify the reduced sum charged.

How Stripe simplifies the management of credit notes

Managing credit notes usually involves refunding balances owed to clients, which is possible by contacting your bank or payment processor if you work in digital environments. Stripe is a modern payment solution enabling you to unify all transactions—online and in person—in a single place and issue refunds with just a few clicks. In addition, customers will enjoy a simplified shopping experience and can choose their preferred checkout method from more than 100 supported by Stripe.

Regardless of the reason for the refunds, Stripe accurately captures and matches them with the organization’s internal records. To further simplify this process, the Stripe App Marketplace is a library of applications that integrate smoothly with your payment system and adapt to the most precise needs of your business.

One of the applications available in the Stripe App Marketplace is Invopop, a solution developed in Spain designed to help edit invoices and credit notes (or documents equivalent to Spanish credit notes in different countries, such as France). Billit, on the other hand, is a pioneering electronic billing platform in Europe that automates linking your company’s bank account and simplifies invoice reconciliation.