What is a credit note under Spanish law?
Article 15 of Spain's Invoicing Regulation (Royal Decree 1619/2012) defines the factura rectificativa (credit note) as the document that corrects or cancels a previously issued invoice when any of the following circumstances arise:
- The original invoice contains incorrect data (amount, tax rate, party identification, description of the transaction).
- Goods are returned or services are cancelled.
- Discounts or rebates not agreed at the time of the transaction are subsequently granted.
- Any of the circumstances triggering a VAT base modification under article 80 LIVA occur (debtor insolvency proceedings, bad debt, contract rescission).
Issuing a credit note is not optional — it is mandatory when the conditions of article 15 RD 1619/2012 are met. An internal credit memo without a proper factura rectificativa has no legal value vis-à-vis the Spanish Tax Agency (AEAT).
Credit note types: R1 to R5
The VeriFactu Regulation (RD 1007/2023) identifies five credit note types based on the reason for correction:
| Type | Reason |
|---|---|
| R1 | Legal error or reason not covered by R2–R4 (the general type for invoice corrections) |
| R2 | Debtor in insolvency proceedings (article 80.Three LIVA) |
| R3 | Bad debt (article 80.Four LIVA) |
| R4 | Correction based on a final court judgment or administrative resolution |
| R5 | Simplified invoice credit notes |
Choosing the correct type matters: in VeriFactu the TipoFactura field must contain the applicable value (R1–R5). Using R1 where R3 is required can invalidate the VAT base reduction for bad debt recovery.
Correction methods
Article 15.2 of the Invoicing Regulation allows two correction methods:
- By difference: The credit note contains only the difference between the correct and the erroneous amount. Standard for partial corrections (e.g., an error in the unit price of one line item).
- By substitution: The credit note contains the complete corrected invoice, fully cancelling the original. Used when the error is structural (wrong recipient, wrong tax rate applied to all lines).
In VeriFactu, the TipoRectificativa field captures the method: S (substitution) or I (difference amount).
Mandatory electronic format
If the original invoice was issued in electronic format, the credit note must also be electronic and registered in the issuer's VeriFactu system. It is not permissible to issue a paper credit note to correct an electronic invoice already registered in VeriFactu — this creates a traceability inconsistency that the AEAT will detect during an audit of the registration log.
From 2027, all invoices between businesses and self-employed persons will be electronic, which means all their credit notes will be electronic as well. For B2G (public sector) invoicing, the obligation has been in place since 2015 via FACe.
Issuance deadline
The Invoicing Regulation does not set a maximum deadline for issuing a credit note, but indirect limits apply:
- VAT base modification (article 80 LIVA): Deadlines are strict depending on the circumstance — for bad debts, the issuer has 6 months from the declaration of insolvency proceedings or from when the debt qualifies as irrecoverable (article 80.Four LIVA). Outside this window, the VAT base modification is invalid.
- Correction of formal errors: No formal deadline, but the longer the delay, the higher the risk of the AEAT challenging the correction in an audit.
- Correction for returns: Must be issued at the time of the return or when the discount is granted, in accordance with the VAT accrual principle.
In practice, the industry applies a 30-day window from the triggering event as a reasonable standard.
VAT effects: modifying the tax base
A credit note has VAT consequences for both the issuer (output VAT) and the recipient (input VAT):
- Issuer: Reduces output VAT in the period when the credit note is issued (or in the original period if the issuer opts to amend that return).
- Recipient: Must adjust the input VAT already deducted. If the recipient deducted the VAT from the original invoice, they must repay the corresponding amount in the VAT return for the period in which they receive the credit note.
DGT ruling V0821-23: When an issuer sends a credit note for a subsequently negotiated discount, the recipient cannot maintain the original full deduction — the input VAT corresponding to the discount must be regularised in the period of receipt of the credit note.
VeriFactu registration fields
In VeriFactu, the credit note is registered with additional reference fields pointing to the original invoice(s):
IDFacturaRectificada: identifier of the original invoice (series + number).FechaExpedicionFacturaRectificada: date of issue of the original.TipoFactura: R1–R5 based on the reason.TipoRectificativa: S (substitution) or I (difference).- If by substitution, amounts reflect the complete correct invoice; if by difference, amounts reflect only the delta.
InvoSeal automatically generates the VeriFactu registration for the credit note linked to the original, with no need to manually enter the reference fields.
Credit note vs. debit note
Spanish law only recognises the factura rectificativa under article 15 RD 1619/2012. A "credit memo" or "debit note" that does not meet the formal requirements of the Regulation (sequential numbering, series, reference to the original, qualified electronic signature) has no fiscal validity and does not allow the issuer to modify the VAT base or recover output VAT already declared.