# CREDIT NOTE

> **Disclaimer — not legal advice.** This template is provided free of charge, as is and with no warranty of any kind, and using it creates no attorney-client relationship. It is jurisdiction-neutral: you are responsible for adapting it, for your own legal and tax compliance, and for having a qualified professional in your jurisdiction review it before you rely on it. Full terms: https://trycolo.co/terms-of-use

**[YOUR BUSINESS NAME]**
[YOUR ADDRESS], [CITY], [COUNTRY]
[YOUR EMAIL] | [YOUR PHONE]
Tax ID: [YOUR TAX ID]

---

## Credit note details

| Field | Detail |
| --- | --- |
| Credit note number | [CN-YYYY-001] |
| Issue date | [DATE] |
| Original invoice number | [INVOICE NUMBER] |
| Original invoice date | [DATE] |
| Original invoice total | [CURRENCY] [AMOUNT] |
| Currency | [CURRENCY — same as the original invoice] |

## Issued to

**[CLIENT LEGAL ENTITY NAME — as on the original invoice]**
[CLIENT BILLING ADDRESS]
Client tax ID: [CLIENT TAX ID — if shown on the original invoice]
Attention: [CONTACT NAME] | [BILLING EMAIL]

---

## Reason for credit

[CHOOSE AND ADAPT ONE:]

- [ ] Billing error: [e.g. "Line 3 was billed at [RATE] instead of the agreed [RATE]."]
- [ ] Duplicate charge: [e.g. "Line 5 duplicated line 2 (same work, same date)."]
- [ ] Canceled work: [e.g. "Deliverable [NAME] was canceled by the client on [DATE] before work began."]
- [ ] Agreed discount or service credit: [e.g. "Goodwill credit agreed with [NAME] on [DATE] for delayed delivery."]
- [ ] Full cancellation: [e.g. "Invoice issued to the wrong entity. A replacement invoice [NEW INVOICE NUMBER] has been issued."]

---

## Credited lines

| # | Original line | Description | Qty credited | Rate | Amount credited |
| --- | --- | --- | --- | --- | --- |
| 1 | [LINE NO.] | [DESCRIPTION, as on the original invoice] | [QTY] | [RATE] | [AMOUNT] |
| 2 | [LINE NO.] | [DESCRIPTION] | [QTY] | [RATE] | [AMOUNT] |

## Credit totals

| | |
| --- | --- |
| Credit subtotal | [CURRENCY] [AMOUNT] |
| Tax reversed at [TAX RATE]% (same rate as the original invoice) | [CURRENCY] [AMOUNT] |
| **Total credit** | **[CURRENCY] [AMOUNT]** |

---

## Revised position on invoice [INVOICE NUMBER]

| | |
| --- | --- |
| Original invoice total | [CURRENCY] [AMOUNT] |
| Less this credit note | -[CURRENCY] [AMOUNT] |
| Revised invoice total | [CURRENCY] [AMOUNT] |
| Already paid by the client | [CURRENCY] [AMOUNT] |
| **Balance still due / (amount owed to client)** | **[CURRENCY] [AMOUNT]** |

---

## Settlement

[CHOOSE ONE:]

- [ ] **Invoice unpaid:** the balance due on invoice [INVOICE NUMBER] is reduced to [CURRENCY] [AMOUNT], payable by the original due date of [DATE].
- [ ] **Refund:** [CURRENCY] [AMOUNT] will be refunded by [BANK TRANSFER / CARD REFUND / PAYPAL] to [ACCOUNT] by [DATE].
- [ ] **Credit applied forward:** [CURRENCY] [AMOUNT] will be deducted from invoice [NEXT INVOICE NUMBER / the next invoice issued], referencing this credit note.

Authorized by: [YOUR NAME], [TITLE] — [DATE]

Questions: [YOUR EMAIL]. Please quote credit note [CN NUMBER] and invoice [INVOICE NUMBER].

---

### How to use this template

1. Issue a credit note for any change to an invoice that has already been sent; edit only unsent drafts.
2. Copy client details, currency and tax rate exactly from the original invoice.
3. State the reason in one or two plain sentences.
4. For a full cancellation, credit the whole invoice, then issue a fresh one with a new number.
5. Keep credit notes in their own number series and file them with the original invoice.

*Template provided by Colo (trycolo.co). Not legal advice — review with a qualified professional in your jurisdiction.*