This article is for general informational purposes only and does not constitute legal or tax advice. For questions about your specific situation, please consult a qualified tax advisor or lawyer.
What Is a Stornorechnung?
A Stornorechnung is a correction invoice that reverses an invoice you've already sent. It contains the same line items as the original, but with negative amounts. In your books, it cancels out the faulty or obsolete invoice.
Once an invoice has been sent to the client or reported to the tax office, you can't just delete or edit it. The invoice number is assigned, the VAT is owed. The clean way forward is a cancellation invoice plus, if needed, a new correct invoice.
When Do You Need a Cancellation Invoice?
Typical reasons:
- Wrong recipient: The invoice went to the wrong company or address.
- Wrong amount or VAT rate: You charged 19% instead of 7%, or got the total wrong.
- Missing or incorrect mandatory details: Tax number, service period, or invoice number are off.
- Service not delivered or returned: The job was cancelled or the goods were returned.
- Partial cancellation: Only part of the service falls away, for example a single returned item.
- Retroactive discount or cash discount: You grant a price reduction after the invoice was issued.
Note: For minor typos without tax impact (for example a misspelled last name), a simple correction letter is usually enough. §31(5) UStDV expressly allows this: you correct the invoice with a document that refers to it specifically and unambiguously, and that document only needs to carry the missing or corrected details. Reissuing the whole invoice is not required. Once amounts or VAT change, you need a formal cancellation invoice.
Stornorechnung or Gutschrift? An Important Distinction
In everyday German business language, both terms are often used interchangeably. Under tax law this has been problematic since 2013:
- Gutschrift per §14(2) UStG: The recipient of the service issues the invoice, not the supplier. This happens with affiliate payouts or with authors and publishers, for example.
- "Commercial" Gutschrift (colloquial): Often used when people actually mean a Stornorechnung or invoice correction.
Since the German VAT reform in 2013, labelling a cancellation invoice as "Gutschrift" can cause tax issues. In the worst case you owe the stated VAT on top (§14c UStG).
The safe choice: Call the document "Stornorechnung" or "Rechnungskorrektur". Reserve the word "Gutschrift" for true cases under §14(2) UStG.
When Does §14c UStG Actually Bite?
The warning about the wrong word is justified, but it does not apply to every case. On 8 December 2022 the ECJ ruled (C-378/21) that no tax liability arises from an incorrect VAT statement when the invoice went exclusively to final consumers who have no right to deduct input tax. The German tax administration adopted this position in its BMF circular of 27 February 2024 and amended section 14c.1 UStAE accordingly.
In practice:
- Invoice to a business: §14c(1) UStG applies. You owe an overstated VAT amount until you correct the invoice.
- Invoice to private customers: No additional tax liability arises from the incorrect statement, because the recipient cannot deduct input tax anyway.
- Mixed cases: The relief covers only the B2C share, and you must be able to prove which invoices went to final consumers.
None of this changes the recommendation, so keep calling the document "Stornorechnung". But if the mistake happened on a purely consumer-facing invoice, the situation is less dire than most guides suggest.
Mandatory Content of a Cancellation Invoice
A cancellation invoice must include the same mandatory details as a regular invoice (§14(4) UStG), plus a clear reference to the original:
- Your full details: name, address, tax number or VAT ID
- Client details: name and address of the recipient
- A new, sequential invoice number: You assign a new number; the original number is not reused.
- Issue date of the cancellation invoice
- Service period (identical to the original)
- Label as "Stornorechnung" or "Rechnungskorrektur"
- Reference to the original invoice: original invoice number and date
- The cancelled line items with negative amounts (minus sign)
- VAT rate and VAT amount also shown as negative
- Reason for the cancellation (recommended, not mandatory)
If you use the small business rule under §19 UStG, no VAT applies, but the usual small business note must still appear on the cancellation invoice. See our post on the Kleinunternehmerregelung for details.
Step by Step: Creating a Cancellation Invoice
- Pull up the original invoice. Note its number, date, and all line items.
- Assign a new invoice number. Gapless and sequential, same as any other invoice.
- Label the document "Stornorechnung". Do not call it "Gutschrift".
- Reference the original clearly. "Cancellation of invoice no. 2026-0123 dated 05.04.2026".
- Copy line items one to one, but with minus signs. VAT is also shown as negative.
- State a reason. Short and factual, for example "Order cancelled" or "Wrong VAT rate".
- Send it to the client. And file it like any other invoice.
- Issue a corrected invoice (if needed). With a new invoice number and the correct data.
Template: Cancellation Invoice
A simple cancellation invoice can look like this:
Stornorechnung (Cancellation Invoice)
[Your name / business name] [Address] Tax number: [XXX/XXX/XXXXX]
To: [Client name and address]
Cancellation invoice number: 2026-0187 Date: 24.04.2026
Cancellation of invoice no. 2026-0123 dated 05.04.2026 Reason: Order cancelled by client
Item Description Qty Unit Price Total 1 Web design package 1 -1,500.00 EUR -1,500.00 EUR Net amount: -1,500.00 EUR VAT 19%: -285.00 EUR Total: -1,785.00 EUR
The amount of 1,785.00 EUR already paid will be refunded to your known bank account within 14 days.
Best regards, [Your name]
Match the line items exactly to the original invoice. For a partial cancellation, only list the affected lines. A ready-to-fill template is available alongside the invoice, quote, and payment reminder templates in the template collection.
How Do You Cancel an E-Invoice?
In the same format as the original. If the e-invoicing obligation applied to the original invoice, the correction has to be an e-invoice too. You cannot cancel an XRechnung with a PDF.
Two fields decide whether the correction has any tax effect at all:
- BT-25: the number of the invoice you are correcting
- BT-26: the issue date of that invoice
Together they are the structured equivalent of the line "Storno der Rechnung Nr. 2026-0123 vom 05.04.2026" you would write on a paper invoice. Without that reference the correction goes nowhere. Invoicing software that issues e-invoices fills both fields automatically when you cancel.
What applies to you depends on the date:
- Since 2025: Every business must be able to receive e-invoices, cancellations included. You may still issue on paper or as a PDF during the transition.
- From 2027: Businesses with more than 800,000 EUR of prior-year revenue issue e-invoices in B2B, cancellations included.
- From 2028: The obligation to issue applies to all businesses in B2B.
- Exempt: Invoices to private customers, small-value invoices up to 250 EUR, and Kleinunternehmer under §19 UStG, who never have to issue e-invoices but must be able to receive them.
The details are set out in the BMF circular of 15 October 2024 and its supplement of 15 October 2025.
Bookkeeping and VAT Impact
A cancellation invoice directly affects your VAT return. Key points:
- The cancellation invoice is booked in the month it's issued, not retroactively in the month of the original.
- The negative VAT reduces your VAT liability in the next return.
- On cash-based VAT accounting (Istversteuerung), the correction only kicks in once the refund has actually been paid back.
- On accrual-based VAT accounting (Sollversteuerung), the date of the cancellation invoice is what counts.
If you already reported the faulty invoice in an earlier VAT return, the cancellation invoice automatically corrects that in the current period. You don't need to amend the old return.
Common Mistakes
- Reusing the original invoice number. Every invoice number may only be used once, cancellations included.
- Writing "Gutschrift" instead of "Stornorechnung". Under §14c UStG this can mean you owe the stated VAT on top.
- Forgetting to negate the amounts. Without minus signs it isn't a cancellation, it's effectively a second invoice.
- No reference to the original. Without the original invoice number, the correction can't be traced.
- Wrong issue date. Backdating is not allowed. A cancellation always carries the current date.
- Only cancelling, not reissuing. If the service was actually delivered, you need a corrected invoice after the cancellation.
Handling Cancellations With a Tool
Building a cancellation invoice by hand is error-prone: negative amounts, the right invoice number, a reference to the original, the correct VAT. Any of these can slip.
An invoicing tool takes most of that off your plate:
- Cancel the original invoice with one click
- New invoice number automatically assigned in sequence
- All line items copied over with correct negative amounts
- Reference to the original invoice set automatically
- Accounting export treats the cancellation as its own record
Less room for errors, and clean books in case the tax office asks questions. For how to archive invoices and cancellations in an audit-proof way, see GoBD-compliant invoices.
For the basics on mandatory fields and invoice formats, see our guide to writing invoices. For when you must issue e-invoices and which format corrections take, see e-invoicing in Germany 2027. If you need a template for the corrected invoice, see the template center.
Want to handle invoices and cancellations without the headache? Try revoBill, the simple invoicing tool for freelancers and small businesses.