What to do if an e-invoice is incorrect?

Two Types of Errors

Technically faulty

The file does not comply with the standard – a mandatory field is missing, the format is invalid. Such invoices fail already during automatic validation. They should be rejected upon receipt, not only discovered during accounting.

Content-wise faulty

Format is valid, but incorrect amount, wrong tax rate or incorrect recipient information. No software detects this – only a content check.

The Correction Process

1. Do not delete the original invoice. It is subject to the retention obligation even if it is incorrect.
2. Reverse or correct. Common approaches include: a reversal invoice with a new, correct invoice – or a correction document with a clear reference to the original invoice number.
3. Establish a reference. The EN 16931 standard provides a specific field for this. Without this reference, it remains unclear in accounting which invoice was replaced.
4. Retain both versions. The faulty and corrected versions.

Consequences for Input Tax Deduction

Missing mandatory information may lead the tax authority to deny input tax deduction. A correction may retroactively affect the original invoice's timing – this must be evaluated tax-wise on a case-by-case basis and is not automatic.

Practical Advice

Automatically validate incoming e-invoices upon receipt against the standard and reject faulty ones immediately. An invoice that is only discovered three weeks later involves significantly more effort than one returned on the same day.