Free Credit Note Template (Credit Memo)
A credit note records a reduction against an invoice you already issued: returned goods, an overcharge or a cancelled charge. Reference the original invoice, explain the correction and show how the credit will be used. A credit note does not, by itself, prove that a refund has been paid.
Download a blank credit note in PDF, Word or Excel, or choose the same form headed CREDIT MEMO. No registration, email or watermark. For the terminology and when to use it, read the credit invoice guide.
Download your credit note or credit memo
Credit note — blank template
Original invoice reference, reason, itemized credit and settlement record. PDF for printing, Word for editing, Excel for line and subtotal calculations. Tax adjustments are entered manually.
Credit memo — alternative heading
The same correction fields with a CREDIT MEMO heading. Choose the label your customer recognizes. Word and PDF totals are completed and checked manually.
Enter positive amounts in the credit lines; the document identifies them as a reduction. Do not enter negative quantities and then subtract the total a second time.
These are general-purpose files, not government-validated e-invoices or a promise of tax compliance. Add the required local identifiers and wording before use. The country checks below explain important limits.
The Excel file calculates line credits and their subtotal, then adds your manually supplied tax adjustment. It does not select a tax rate, post to a ledger, refund money or update an invoice in your account.
What to put on a credit note
Keep the original invoice and this correction together. A separate CN reference is a practical way to distinguish the two; local numbering rules still apply.
| Field | What to enter | Why it matters |
|---|---|---|
| Credit reference and issue date | For example CN-0012 and 25 September 2026 | Identifies this correction without renaming the invoice. |
| Supplier and customer | Names, addresses and applicable tax IDs | Shows who grants the credit and who receives it. |
| Original invoice number and date | Both references, not only a purchase order | Lets the recipient match the adjustment to the right document. |
| Reason | Returned items, specific pricing error or cancelled charge | Explains why the amount changed. |
| Credited lines | Description, quantity and credit per unit | Shows the adjustment, not the entire original sale again. |
| Currency and tax adjustment | Currency; manually verified tax amount and any locally required rate detail | Keeps the correction consistent with the original supply and applicable tax rules. |
| Total credit | Line subtotal plus the tax adjustment | States how much value the credit represents. |
| Balance before and after | Outstanding balance immediately before this credit, then the amount remaining | Avoids treating earlier payments as still unpaid. |
| How it will be settled | Reduce this invoice, hold for a later invoice or refund; include references and status | Separates the accounting correction from moving money. |
| Issued or approved by | Name and any signature required for the transaction | Provides a contact for the correction. |
How to issue a credit note in five steps
Start with the issued invoice, not a new blank sale.
- 1. Find the original invoice. Check its number, date, customer, currency and current unpaid balance, including payments and earlier credits.
- 2. Identify the change. List only the returned quantity or pricing difference and state the reason. Keep supporting approval or return records.
- 3. Check the tax treatment. Use the original supply information and applicable correction rules; enter the tax adjustment manually. Do not assume every country uses the same process.
- 4. Give the credit its own identifying reference and issue date. Review line arithmetic, tax and the resulting balance before sending it.
- 5. Send it to the customer and state the settlement. Record whether the credit reduces this invoice, is held for later use or is to be refunded. Keep both documents and separately record any actual refund.
Three filled-in credit note examples
All businesses and transactions below are fictional. Amounts are USD. To isolate the correction arithmetic, each example assumes no tax was charged on the original invoice; the tax adjustment is therefore $0.00. These are not tax-rate examples or instructions to cancel a regulated invoice.
Example 1 — a partial return
Northline Office Supply accepts three returned chairs from Elm Studio. No payment or earlier credit has been posted to this invoice.
| Entry | Completed example |
|---|---|
| Original invoice | INV-2041, 10 September 2026; original total $4,800.00 |
| Credit note | CN-0012, 25 September 2026 |
| Reason and line | Return accepted: 3 office chairs × $240.00 = $720.00 |
| Subtotal / tax / credit total | $720.00 / $0.00 / $720.00 |
| Balance before → after | $4,800.00 − $720.00 = $4,080.00 |
| Settlement | Apply $720.00 against INV-2041; no cash refund. |
Example 2 — an hourly rate was overstated
Harbor Design billed Cedar Workshop for 40 hours at $95 instead of the agreed $85. Credit the $10-per-hour difference, not all 40 hours of work.
| Entry | Completed example |
|---|---|
| Original invoice | INV-2048, 15 September 2026; 40 × $95.00 = $3,800.00 |
| Credit note | CN-0013, 25 September 2026 |
| Reason and line | Rate correction: 40 × ($95.00 − $85.00) = $400.00 |
| Subtotal / tax / credit total | $400.00 / $0.00 / $400.00 |
| Balance before → after | $3,800.00 − $400.00 = $3,400.00; no previous payments or credits |
| Settlement | Apply to INV-2048. The corrected service value is 40 × $85.00. |
Example 3 — fully credit an unpaid invoice
A fictional $1,150 invoice was addressed to the wrong customer and remains unpaid. This example shows a full credit after the business has checked the appropriate correction procedure. Some tax or e-invoicing systems require a separate cancellation process.
| Entry | Completed example |
|---|---|
| Original invoice | INV-2050, 18 September 2026; $1,150.00 |
| Credit note | CN-0014, 25 September 2026 |
| Reason | Incorrect customer on original invoice; full amount credited |
| Subtotal / tax / credit total | $1,150.00 / $0.00 / $1,150.00 |
| Balance before → after | $1,150.00 − $1,150.00 = $0.00 |
| Settlement and next step | Credit the unpaid balance; keep the original and correction, then issue the correct invoice under the applicable process. |
Refund, future credit or a lower unpaid balance?
Use the outstanding balance, not automatically the original invoice total. If a $1,000 invoice has already been paid, its unpaid balance is $0; a later $200 credit creates a refund or account credit to handle, not a new $800 bill. A promise to refund is not evidence that the transfer was completed.
| Situation | Record on the credit note | Separate next action |
|---|---|---|
| Invoice still unpaid | Amount applied to that invoice and resulting balance | Update the receivable without double-counting earlier payments or credits. |
| Customer already paid; refund agreed | Refund due, amount and original invoice | Make and record the refund with date/reference; do not mark it paid before it happens. |
| Credit held for a later invoice | Amount held on account and agreed intended use | Track the unapplied credit and reference it when applied. |
Country-specific checks before you send it
The following checks concern the named tax systems, not a universal credit-note law. Sources checked 25 September 2026. The generic files do not implement local reporting, e-invoice validation or all conditional fields. Check the current official rules and your business circumstances.
United Kingdom — VAT credit notes
For VAT validity, HMRC says the note must reflect a genuine mistake, overcharge or agreed reduction and be issued within 14 days of the refund payment to the customer. That is not 14 days from the original invoice. See VAT Notice 700, section 18.2.3.
HMRC lists eight groups of details: identifying number and issue date; supplier name, address and VAT number; customer name and address; identifying goods/service description; quantity and amount for each description; total credit excluding VAT; VAT rate and amount in sterling; and original VAT invoice number and date. If the original invoice cannot be identified, HMRC must be satisfied by other evidence.
The no-VAT-adjustment option is conditional: the customer must be able to reclaim all the supply tax and both sides must agree. The note then says “This is not a credit note for VAT”; outputs/inputs records still need the relevant adjustments for the return. The wording is not a general exemption. Section 18.2.5 uses the rate at the original supply’s tax point; already-declared VAT errors have separate correction rules.
India — GST credit notes and declaration limits
CGST Act section 34 permits a registered supplier’s credit note for an overstated taxable value/tax, returned goods or deficient goods/services. Details are declared in the month of issue, no later than 30 November following the supply financial year or the relevant annual-return filing date, whichever is earlier. This is a declaration limit, not a worldwide expiry date for commercial credits.
From 1 October 2025, the supplier cannot reduce output tax where the registered recipient has not reversed the attributable input tax credit, if that credit was availed. The section also contains a passed-on-tax-incidence condition for other cases. Issuing this file does not perform those tax adjustments.
Rule 53(1A) has nine clauses covering supplier identity/GSTIN; document nature; a serial of at most 16 characters unique for the financial year; issue date; registered recipient details; conditional unregistered recipient/delivery/state details; original invoice number(s)/date(s); taxable value, tax rate and amount; and signature/digital signature. Add the applicable particulars rather than assuming the generic file is GST-compliant.
Australia — adjustment notes and the $75 GST threshold
The ATO generally requires a valid adjustment note before a decreasing adjustment, unless the adjustment is for GST of $75 or less; other exceptions may apply. The threshold is the GST adjustment, not the gross credit. Its example is a $660 discount producing a $60 GST decrease. A transaction with no GST cannot support a decreasing GST adjustment merely because a document is called an adjustment note. See ATO adjustment notes.
Malaysia — MyInvois Credit Note is not Refund Note
In MyInvois document types, a Credit Note reduces an earlier e-Invoice without returning money to the buyer. A Refund Note confirms the return of the buyer’s payment. Use the correct platform document for the transaction; a downloaded PDF or spreadsheet is not a validated MyInvois e-Invoice. Self-billed variants have their own eligibility rules.
Singapore — leaving GST unchanged needs an agreement
IRAS invoicing guidance allows no adjustment to the original GST amount only when supplier and customer agree in writing and the customer is fully taxable (does not make exempt supplies). Both retain the agreement, and the note states “This is not a credit note for GST purposes”. Under that option, neither party adjusts the related taxable supplies/purchases or output/input tax. Do not add this statement as an unchecked default footer.
European Union — identify the invoice being amended
VAT Directive Article 219 (consolidated text dated 14 April 2025) treats a document amending and specifically, unambiguously referencing an initial invoice as an invoice. That is why the original reference matters. Apply the relevant national VAT and electronic-invoicing requirements too; the document heading alone does not establish compliance.
Philippines — credit/debit memos are supplementary documents
BIR RR 7-2024, sections 2(2) and 6(B)(15), classifies credit/debit memos as supplementary documents, not valid proof for an input-tax claim. It requires “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX.” conspicuously printed in bold on the face, in addition to applicable information.
For businesses using manual invoices, section 7(1) requires an Authority to Print for principal and supplementary documents before accredited printing. Downloading our generic form does not grant that authority or certify BIR compliance. The old 2024 transition deadlines are not instructions for using this template now.
Which document name should you use?
Choose the document by its function and jurisdiction, not only by its title. The two downloadable headings here record the same general-purpose seller credit.
| Name | Who issues it / job | Boundary |
|---|---|---|
| Credit note / credit memo | Seller documents a reduction against an invoice | Use the local tax particulars, not just the heading. |
| Credit invoice | A term sometimes used for an invoice credit | Meaning is not universal; the guide explains the terminology. |
| Adjustment note (Australia) | Documents a GST adjustment | ATO requirements and exceptions apply. |
| Refund Note (MyInvois) | Supplier confirms money returned to the buyer | Different from the MyInvois Credit Note type. |
| Self-Billed Credit Note (MyInvois) | Eligible buyer corrects an earlier self-billed e-Invoice | Not a general option for every buyer. |
Credit note mistakes to catch before sending
Keep the original invoice and correction trail rather than silently replacing the issued record. The credit invoice guide explains that distinction.
- Missing the original invoice date or number: a purchase-order reference alone may not identify what was corrected.
- Crediting the whole line instead of only the returned quantity or overcharge.
- Subtracting the credit twice, or using the original total when earlier payments have already reduced the balance.
- Marking a refund as complete before any money has been returned.
- Copying a VAT/GST disclaimer without meeting its conditions, or assuming a downloaded form submits a tax return.
Need a corrected invoice as well?
Use the downloads above for the credit note. If your correction process also calls for a new invoice, create that invoice with the free invoice generator. It currently creates invoices and estimates, not credit notes; it does not apply this credit to an existing account balance.
Frequently asked questions
Is a credit note a formal document or just an informal note?
It is a commercial correction record, not just a casual message. Tax status depends on jurisdiction: the EU has an invoice-amendment rule, UK VAT notes have validity requirements, and Philippine credit/debit memos are supplementary documents rather than input-tax proof. A formal-looking template alone is not enough.
Are credit notes and credit memos the same?
They commonly describe a seller’s invoice credit. The downloads use the same fields with different headings. Do not assume every local document called a credit invoice or refund note has the same function; see the credit invoice guide and country checks.
Can I credit only part of an invoice?
Yes, a partial credit can identify the returned quantity or overcharged amount. Example CN-0012 credits $720 against an unpaid $4,800 invoice, leaving $4,080. Check previous payments and credits before calculating the actual balance.
What if I make a mistake on a credit note?
Keep the issued record and check the required correction process for your accounting and tax system. A correcting debit note or another adjustment may be appropriate, but do not assume one universal reversal procedure or silently overwrite the record.
What is the UK deadline for a VAT credit note?
HMRC Notice 700 section 18.2.3 says a VAT-valid credit note must be issued within 14 days of the refund payment being made to the customer. The trigger is the refund, not the date of the original invoice.
When does Australia’s $75 adjustment-note exception apply?
The ATO threshold refers to GST of $75 or less in the decreasing adjustment, not the total value of the invoice or credit. Other exceptions can apply. A transaction that did not include GST cannot support a decreasing GST adjustment.
How are MyInvois Credit Note and Refund Note different?
The Malaysian platform’s Credit Note reduces an earlier e-Invoice without money being returned. Refund Note confirms a refund of the buyer’s payment. A generic download does not replace the required platform document.
I received a credit note but no refund. Is that possible?
Yes. A credit may reduce an unpaid invoice or be held for a later invoice rather than paid out immediately. Check the stated settlement and your agreement. If a refund was promised, ask for its expected date and payment reference; the credit note alone does not prove it was sent.