Credit Notes in Belgium – Rules, Format & Compliance Guide

Credit Notes in Belgium

In Belgium and other countries, a credit note is a valuable financial document used to rectify or amend an issued invoice. It is a written claim by one party (in most instances a seller) against another party (in most instances a buyer) to lower the liability.

Businesses should remain vigilant regarding the issuance and handling of credit notes electronically since Belgium is progressing towards mandating e-invoicing by 2026. The fundamentals of a credit note, like its definition, when and why to issue it, how to issue and properly prepare it, and how it is different from a standard invoice, will be covered in this guide.,

 

What is a credit note? 

An official document produced by the seller to update or rectify an existing invoice is called a credit note. For a number of reasons, including overpricing, returned goods, or incorrect invoices, adjustments may be required. The purpose of the credit note is to verify that a certain amount has been canceled and the client is no longer due for it.

A credit note must contain all of the same information, as the original invoice, in order to preserve accuracy and consistency in financial records. For ease of tracking and transparency, the original invoice number should also be mentioned. Each credit note has a unique number and is a crucial component of the financial records of your business. It should also be kept in mind that the credit note can only be issued if the original  invoice is still valid and hasn't expired. A credit note's value is usually displayed with a negative (-) symbol to show that the amount is being subtracted and is no longer due.

As Belgium e-invoicing legislation continuous evolution, most notably with the imminent e-invoicing Belgium 2026 requirement, businesses will have to ensure that their credit notes are processed in accordance with digital invoicing regulations. Efficient processing of credit notes in e-invoicing Belgium systems will be crucial in ensuring legal compliance and smooth financial operations.

When is a credit note issued in Belgium? 

Key situations where a credit note may be necessary includes: 
 

• To rectify errors in the original invoice, such as inaccuracies in pricing, product quantities or VAT calculations. 
• When goods are returned or services are cancelled after the invoice has already been issued. 
• To apply discounts, rebates, or allowances that were inadvertently omitted from the initial invoice. 
• To adjust and reduce VAT liability in cases where the original invoice overstated the taxable amount. 
• When a transaction is cancelled in full, requiring invoice to be effectively nullified for accounting and tax purposes. 

Key differences between a credit note and a debit note

 

Criteria	Credit Note	Debit Note
Purpose	Issued to amend or cancel a previously issued invoice.	Issued to indicate an increase in the amount due on an original invoice.
Amount indicated	The amount is shown with a negative (-) sign to reflect a reduction in value	The amount is shown with a positive (+) sign to indicate an additional charge.
Reference requirement	Must comply with the regulatory guidelines and clearly reference the original invoice for accounting accuracy.	Must directly relate to and reference the original invoice it adjusts.
Accounting impact.	Treated as a reduction in business revenue in financial records.	Treated as an increase in receivables or income in financial accounts.

How to issue a credit note in Belgium? 

Issuing a credit note in Belgium involves several important steps to ensure it meets both accounting standards and VAT compliance requirements. 

 

Follow these steps to issue an accurate and valid credit note:

1. Clearly title the document as a “Credit Note” to distinguish it from other financial records. The term “Crediting” may also be used where appropriate.
2. Include the original invoice number and date to maintain clarity and traceability in records. 
3. Add the relevant account number and payment details to the document for completeness.
4. Assign a unique sequential number to the credit note. Many businesses choose to keep this number in sequence with the original invoice to simplify tracking.
5. Display the credited amount with a minus (-) sign, clearly indicating that this sum is being deducted from the previously invoiced total.
6. Where relevant, briefly state the reason for issuing the credit note — whether it’s a pricing adjustment, returned goods, or another correction.
7. In case VAT is payable, ensure you include a VAT note clearly stating: "VAT to be refunded to the state to the extent it was originally deducted." This is for proper reporting of taxes and adherence to Belgian VAT regulations.

Important Information to be included in a Credit Note in Belgium

 

Here’s what should be included while preparing a credit note in Belgium: 
 

The document must be clearly marked as a ‘credit note’ to avoid any confusion with the standard invoices. 

Complete details of the supplier and the customer should be provided. 

The date on which the credit note is issued must be mentioned. 

A unique credit note number should be assigned for accurate record-keeping and any reference. 

Include a reference to the original invoice, noting its number and date. 

The reason for the Credit note should also be mentioned as per Belgium Tax law. 

Credit note for Bad debts

 

When a debtor is found to be bankrupt or in arrears on an invoice, a supplier will produce a credit note. This is necessary to maintain proper accounting records and for accounting purposes as companies will typically have to pay tax on the amounts invoiced, regardless of payment.

Issuing a credit note in such situations helps businesses rectify their accounts and reclaim the VAT previously remitted to the tax authorities on the bad debt amount. The procedure safeguards the business against unwanted loss of funds at the expense of compliance with Belgian VAT regulations. It also justifies the reversal of the transaction, which creates legal certainty and transparency in accounting in the case of bad debts.

 

Conclusion  

In order to have the knowledge of issuing a credit note in Belgium, it is essential for firms to remain compliant with VAT rules while keeping their accounting and financial records accurate as well as transparent.

Belgium recently compelled companies to adopt e-invoicing from January 1, 2026. From then onwards, all invoices and credit notes have to adhere to a standardized digital format and regulatory guidelines. The action puts great value on properly managed credit notes, not only for VAT reasons but also as a method of proper and transparent accounting as part of the developing landscape of e-invoicing in Belgium.

Flick Network, an accredited e-invoicing service provider with over 5 years of industry expertise and a proven 99.9% success rate in e-invoice generation, is well-positioned to support your business in navigating this shift. Our reliable solutions ensure seamless, compliant processing of invoices and credit notes in line with Belgium’s upcoming 2026 mandate.

 

FAQ

What is a credit note in Belgium?

A credit note is a document issued to correct or reduce an invoice amount due to pricing errors, returns, or VAT adjustments.

When should a credit note be issued?

Issue a credit note for invoice mistakes, returned goods, cancelled services, VAT corrections, or transaction cancellations.

What should a Belgian credit note include?

• Key details:
• Credit Note’ title
• Issue date
• Unique credit note number
• Supplier & customer info
• Original invoice reference
• Reason for issue
• Amount with a (-) sign
• VAT refund statement if applicable

What’s the difference between a credit note and a debit note?

A credit note reduces the invoice amount, shown as (-). A debit note increases the invoiced amount, shown as (+).

Can a credit note be issued for bad debts?

Yes — issue a credit note to reclaim VAT on unpaid invoices when a customer is bankrupt or defaults.

Is e-invoicing mandatory for credit notes in Belgium?

Yes — from January 1, 2026, all invoices and credit notes in Belgium must follow a digital e-invoicing format.