TL;DR: 🙃 Yes, you should issue a separate invoice cancellation (Stornorechnung) document if you need to correct or cancel previously issued and paid invoices.
What is an invoice cancellation?
An invoice cancellation, known as "Stornorechnung" in German, is a special document used to correct invoices that have already been issued, especially when they've been paid or recorded incorrectly. Unlike standard corrections, a Stornorechnung completely cancels the original invoice, returning the paid amount to the client.
When should you create an invoice cancellation?
There are mainly two situations that require issuing a Stornorechnung:
1. Invoice already paid
If your client already paid the invoice, you cannot simply correct the original invoice. Instead, issue an invoice cancellation clearly referencing the original invoice, cancel the paid amount, and then create and send a new, corrected invoice.
2. Significant errors or missing information
Important mistakes, such as incorrect amounts, wrong VAT numbers, or missing mandatory invoice details (as outlined in §14 Abs. 4 UStG), require an invoice cancellation.
Minor errors, like simple typos, usually don't require a cancellation.
📌 Note: Your clients depend on correct invoices for their VAT deductions. Always correct important errors promptly
How to correctly issue an invoice cancellation
An invoice cancellation is similar to a regular invoice but with key differences:
Clearly mark the document as "Invoice Cancellation" or "Stornorechnung."
Include a new unique invoice number.
Reference the original invoice number and date clearly.
👍 Although invoices are commonly issued in German, you’re free to use English or other languages. It’s important, however, that your client clearly understands the invoice content. Additionally, you might need to include a German translation for tax purposes.
Information required on a cancellation invoice:
To ensure your invoice cancellation complies with German regulations, it should include:
Clear marking as a "Cancellation Invoice" or "Stornorechnung."
The name and address of both contracting parties (service provider and recipient).
Your tax number and/or VAT identification number.
A unique cancellation invoice number referencing the original invoice number.
The issue date of the cancellation.
Original description of the goods or services previously invoiced.
The reason for the cancellation.
The adjusted amounts, clearly broken down by applicable tax rates.
Quantities, net amounts, VAT, and gross totals clearly stated.
✍️ Example of an invoice cancellation
Invoice Cancellation: CI-20250318
Date: Mar 18, 2025Service date: Feb 01, 2025 - Feb 27, 2025
From:
Müller Herman
Hauptstraße 15, 10115, Berlin, Germany
herman@muller.com
Tax number: 30/441/24107
To:
Acme GmbH
Ruppiner Strasse 58, Gransee, 16775, Germany
acme@gmbh.de
VAT-ID: DE123456789
Description
Quantity
Net Amount
VAT (19%)
Gross Amount
Web Design Services
1
500,00 €
95,00 €
595,00 €
Subtotal excluding VAT: 500,00 €
VAT 19%: 95,00 €
Total: 595,00 €
Notes: We hereby cancel Invoice No. 2025-123, dated 01.03.2025, due to an incorrect billing amount. The total amount will be refunded to your bank account within 7 working days.
Easily create invoice cancellations with Norman
Norman simplifies invoice cancellations for freelancers and self-employed professionals in Germany:
Quickly create invoice cancellations.
Automatically include all mandatory details.
Keep digital records compliant with German regulations (GoBD).
Master self-employment in Germany with our free handbook 🇩🇪
Feeling overwhelmed? We've created an easy-to-follow handbook covering all basics related to self-employment in Germany:
✅ Clear, step-by-step guides covering all the fundamentals
🎁 Bonus resources: deductibles cheat sheet, invoice template & 2025 tax calendar
Invoice cancellation for small businesses
Even if you're using the small business regulation ("Kleinunternehmerregelung"), you're still required to issue correct invoices and cancellations. The only difference: You won't include VAT amounts but must clearly state you're VAT-exempt under §19 UStG.
Difference between invoice cancellation and credit note
It's common to confuse an invoice cancellation with a credit note ("Gutschrift"). Here's a clear distinction:
Invoice Cancellation | Credit Note |
|---|---|
Issued by the service provider | Issued by the service receiver |
Corrects a previously incorrect invoice | Represents payment to a freelancer without prior invoice |
Adjusted amounts to neutralize original invoice | Positive amounts indicating payment |
Incorrect usage of these terms can lead to serious tax issues, including denial of VAT deductions by German tax authorities.
Conclusion
Correctly handling invoice cancellations is important for freelancers and self-employed individuals in Germany to maintain compliance and avoid tax issues. Using specialized tools like Norman can greatly simplify this process, ensuring accuracy and legal conformity.
FAQ – Frequently asked questions about invoice cancellations
What exactly is an invoice cancellation?
A special invoice used to correct a previously issued incorrect invoice.
Can I correct an invoice myself after the customer paid it?
No, you must issue an invoice cancellation and then a new correct invoice.
How long should I keep an invoice cancellation? You must retain the original invoice, the cancellation, and the corrected invoice for 8 years.
What's the difference between "Stornorechnung" and "Gutschrift"? A "Stornorechnung" corrects an incorrect invoice, whereas a "Gutschrift" is typically a payment document issued by the customer.
Can I change an invoice after sending it but before payment? Yes, in that case, you may send a corrected invoice or issue a simple correction document without canceling.