The glossary to understand and take action

Credit note

A document that reduces or cancels all or part of an invoice by identifying the transaction and the correction.

Notion comptable, fiscale ou juridique · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Definition and points to distinguish

The file reconciles the original invoice, the reason, the corrected amounts and the treatment of payment. A credit note does not by itself prove that a bank refund took place. A VAT correction and its reporting period must be reviewed separately according to the facts.

In your file

What this changes in practice

A credit note corrects an invoice, for example following a return, a discount or an error. It must make it possible to understand the correction and its link with the original invoice. An invoice already issued should not simply be deleted to make the transaction disappear. The treatment of the amount and VAT must remain consistent for the issuer and the recipient, with the corresponding supporting documents.

A scenario to help you understand

Educational example

A supplier accepts the return of a product. It issues a referenced credit note, and the customer reconciles it with the invoice and the refund or offset.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Référencer la facture corrigée
  • Expliquer le motif et le montant
  • Rapprocher remboursement ou compensation

The practical question

Find out more

Comment éviter qu’un avoir soit oublié dans le suivi client ?

Référencez la facture concernée et vérifiez son imputation dans le compte du client. Précisez s’il sera remboursé ou compensé avec une dette existante selon l’accord. Rapprochez le traitement comptable et les échanges commerciaux. Un avoir émis mais non pris en compte peut provoquer une relance injustifiée ou un paiement excessif.

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

Sales invoiceA sales invoice describes the transaction invoiced to a customer, with the applicable information and VAT treatment.Purchase invoiceA purchase invoice describes the goods or services invoiced to the company by a supplier.VATValue added tax (VAT) is a consumption tax applied to transactions falling within its scope according to their own rules.Right of withdrawalThe right of withdrawal makes it possible, in situations provided for by law, to withdraw from a contract within a specified period and according to specified procedures.VAT numberThe VAT number identifies a person for their value added tax obligations within the relevant system.VAT reverse chargeVAT reverse charge refers to a mechanism under which the customer is liable for the tax according to the conditions applicable to the transaction.

Put it into practice

Explore further with our guides

Practical guideInvoicing in Luxembourg: the details to checkPractical guideCredit note and corrective invoice: correct without losing the audit trailPractical guideOSS portal: preparing VAT for distance sales

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.