Credit Note in France: Meaning, Usage, Example & Template (Note de Crédit Explained)

A Credit Note France (facture d'avoir) is a compulsory accounting document that is filed in order to correct or cancel an invoice that has already been issued. According to French tax legislation, an invoice can no longer be amended or erased once drawn up; rather, a credit note should be filed for any cancellation or reduction of the amount invoiced. 

Subject to formal VAT and invoicing regulations, a credit note has to refer to the original invoice, have a unique number, and satisfy formal format criteria. As part of France's developing e-invoicing regime, from 2025, credit notes will be subject to electronic transmission and compliance as well.

What is a credit note?

A credit note France, or credit memo or avoir, is a formal accounting document from a supplier to cancel out or offset an amount charged in an earlier issued invoice. It is a "negative invoice" and states that a credit or refund is owed by the supplier to the buyer. It's illegal in France to modify or remove an invoice after issuing it; to rectify it, a credit note should be utilised. The credit note would refer to the original invoice, carry a unique number, and should be retained for no less than 10 years under French tax laws.

For instance, here’s a credit note France example: if a person had invoiced €100 but overcharged the customer by €20, a credit note of €20 must be issued to correct the variance. All credit notes must reference the original invoice, have an individual number, and be kept on record for at least 10 years under French tax regulations.

When is a Credit Note Required in France? 

In France, a credit note is mandatory whenever an issued invoice requires adjustment, cancellation, or reduction due to legal, commercial, or accounting reasons.

• Billing errors: Incorrect pricing, VAT miscalculation, or duplicate invoicing must be corrected through a credit note.
• Product returns or unrendered services: If goods are returned or services are not provided, the related invoice must be reversed accordingly.
• Damaged or missing goods: A credit note adjusts the invoice to reflect any defective or undelivered items.
• Order cancellations or modifications: When an order is cancelled or changed after invoicing, a credit note partially or fully nullifies the original amount.
• Post-invoice rebates or discounts: Any rebates, commercial gestures, or price reductions granted after billing must be documented with a credit note.
• Consumer right of withdrawal (B2C): When a consumer cancels a purchase within the legal cooling-off period, a credit note cancels the original invoice.

Legal & VAT Rules Governing Credit Notes in France 

Credit notes in France are governed by strict legal and VAT regulations, mirroring the formal standards applied to standard invoices, with several additional compliance obligations.

Key legal and VAT rules include:

• Retention period: Credit notes should be retained for a period not less than 10 years, since they are part of the company's formal accounting and VAT records.
• Sequential numbering: A credit note should be given a unique number different from the invoice numbering sequence; consecutive numbering should not be skipped or repeated.
• Reference to original invoice: A credit note should refer appropriately to the invoice being credited, e.g., its original invoice number and date.
• Compulsory content: It must contain all normal invoice information (customer, supplier, VAT, line, totals) and be clearly labelled facture d'avoir or note de crédit, with the adjusted net amount. 
• VAT adjustment: Credit notes provide businesses with the opportunity to modify VAT declared on original invoices. The VAT refundable or deductible should be quantified and set off in VAT returns.
• Issuance in time: There isn't any particular legal time limit, but there must be a credit note issued immediately the error or return is discovered, preferably within the 3-year commercial time-bar. 

Note: Non-issue of a credit note when due can lead to VAT non-compliance, financial discrepancies, or an audit penalty.

Mandatory Details on a Credit Note (Format Requirements)

A valid credit note in France must comply with strict formatting rules defined under Article 242 nonies A of the French Tax Code. These requirements ensure legal traceability and proper VAT adjustments.

Mandatory elements of a compliant French credit note include:

• Document title: The credit note must be clearly marked as a Facture d’avoir, Avoir, or Credit Note to distinguish it from a regular invoice.
• Reference to original invoice: It must clearly state the invoice number and date of the document being amended, e.g. “Annule et remplace la facture n°X du [date]”.
• Negative values: All amounts should be negative or made clear as credits. Using “Net à payer” is not appropriate and should be substituted with “Net à déduire” or "net à créditer”.
• Reason for issuance: This is not required, but it is worth noting a clear mention of the rationale (e.g. product return, billing error, post-sale rebate), which assists with clear record keeping for both parties.
• Detailed VAT breakdown: If the original invoice included VAT, the credit note must include the amount of VAT being reversed and show any applicable rates, and totals that can be credited.
• Refund terms: Where applicable, state how the credit will be satisfied (i.e. will it be a cash refund? Money transferred to a bank account? Proportion of a future invoice?)

The credit note must include all of the same standard invoice data, which should also include the supplier identifier and customer identifier (e.g. SIREN/SIRET) as well as descriptions, quantities, and unit prices. The credit note must be as complete and accurate as the original invoice so that it retains legal standing in audits and VAT reporting.

France Credit Note Excel Format Download

Easily create, edit, and download a credit note Excel template for France: Download France Credit Note Excel Format

How to use this Credit Note template:

1. Download the Excel file using the link above.
2. Open the file in Microsoft Excel or Google Sheets.
3. Edit your company details, buyer information, and product descriptions as needed.
4. Update the quantities, prices, and VAT rates to match your transaction.
5. Save or export the completed credit note as PDF for easy sharing with your client.

Electronic Credit Notes & e-Invoicing Compliance 

With France’s mandatory B2B e-invoicing framework coming into effect from 2026, electronic credit notes will be fully integrated into the digital invoicing system. Negative invoices fall under the same legal scope and technical standards.

Key compliance rules for electronic credit notes:

• Mandatory electronic issuance: From September 2026, credit notes issued between VAT-registered businesses must be sent and received via approved e-invoicing platforms, ensuring full visibility for tax authorities.
• Structured data format: Credit notes will follow the same formats as invoices (e.g. Factur-X, UBL) and must include indicators that clearly identify them as credit documents, linked to the original invoice reference.
• System integration: E-invoicing solutions must support credit note functionality, including proper referencing, VAT reversals, and transmission to both the buyer and the French tax administration.
• Invoice linkage requirement: Credit notes cannot be issued without a corresponding invoice. French law requires a documented audit trail from invoice to credit note. Issuing a credit note without referencing the original invoice is not permitted.
• No signature requirement: A digital signature is not compulsory. Validity relies on compliance with format and integrity protocols, not on electronic signing. Properly issued credit notes are legally enforceable without manual or digital signatures.

How to Report Credit Notes in VAT Returns?

In France, credit notes must be correctly reported in the VAT return (Form CA3) to ensure accurate tax declarations and avoid compliance errors. These adjustments depend on the nature of the original transaction and the period in which it was reported.

• Taxable transactions: If the original invoice was reported on lines A1, A4, or B2 (domestic taxable sales), the corresponding credit note should be declared on line B5 – “Adjustments”.
• Non-taxable transactions: If the transaction was previously reported on lines such as E1 or F2 (e.g. intra-community supplies or exports), adjustments must be declared on line F8 – “Adjustments”.
• Avoid incorrect deductions: Do not subtract the credit note from the same line as the original transaction (e.g. line F2). Instead, always use the designated adjustment lines (B5 or F8) to correct figures from prior periods.

Common Mistakes to Avoid 

Even well-structured businesses can make costly errors when handling credit notes. Below are the most frequent pitfalls and how to avoid them, to ensure compliance with French VAT and invoicing laws:

• Deleting the invoice instead of issuing a credit note: In France, issued invoices must never be deleted. Use a credit note to legally cancel or reduce the amount.
• Wrong VAT return line: Don’t adjust credit notes on the same line as the original invoice. Use Line B5 for taxable and Line F8 for non-taxable adjustments.
• Missing original invoice reference: A valid credit note must clearly mention the number and date of the invoice it corrects.
• Improper formatting: Credit notes must be labelled “Avoir” or “Facture d’avoir,” show negative amounts, and include all mandatory VAT details.
• Delayed issuance: Credit notes should be issued promptly once an error or return is identified to avoid accounting mismatches or audit issues.

Conclusion

Credit notes in France are legally required to correct or cancel issued invoices; deleting or editing invoices is not allowed. They must include key details like the original invoice reference, reason for the credit, negative amounts, and VAT breakdown. Credit notes must be numbered, archived for 10 years, and properly reported in VAT returns. With the upcoming e-invoicing mandate, electronic credit notes will also be mandatory for B2B. Credit notes are formal financial documents that ensure billing accuracy and tax compliance.