About SendInvoice Credit Note Generator

What is SendInvoice Credit Note Generator?

SendInvoice Credit Note Generator is a free, web-based tool for creating professional UK/EU compliant credit notes. It enables businesses to issue refunds, correct invoice errors, and handle returns with proper VAT/GST documentation. Part of the SendInvoice platform developed by Assemblysoft Ltd, UK.

Free preview includes sending credit notes and tracking. No credit card required.

What is a Credit Note?

A credit note (also called credit memo in the US) is a commercial document issued by a seller to a buyer. It reduces or cancels the amount owed on an original invoice. Credit notes are used for:

Product returns and refunds
Invoice errors and overcharges
Damaged or faulty goods
Post-sale discounts
Billing adjustments
Goodwill gestures

In the UK and EU, VAT-registered businesses must issue credit notes to adjust VAT obligations when refunding customers.

Core Features

VAT Compliance: Fully compliant with HMRC and EU VAT regulations
Automated Calculations: Automatic VAT/tax calculations
Invoice Linking: Link credit notes to original invoices
Partial & Full Credits: Issue partial or full refunds
Reason Tracking: Record reason for credit (return, error, etc.)
Multi-Currency: 150+ currencies with automatic formatting
Custom Branding: Add company logos and details
PDF Generation: Professional PDF credit notes
Email Delivery: Send credit notes to customers directly
Multi-Language: Interface in 7 languages

Credit Note Types

Type	Description	Use Case
Full Credit Note	Cancels entire invoice amount	Complete returns, order cancellations
Partial Credit Note	Reduces invoice by specific amount	Partial returns, discounts, adjustments
Corrective Credit Note	Corrects invoice errors	Pricing errors, wrong quantities
VAT Credit Note	Adjusts VAT amount only	VAT calculation errors
Goodwill Credit	Customer compensation	Service issues, late delivery

UK VAT Credit Note Requirements

Under HMRC rules, a valid VAT credit note must include:

Document clearly marked "Credit Note"
Unique credit note number
Business name, address, and VAT number
Customer name and address
Credit note date
Original invoice number and date
Reason for credit
Description of goods/services being credited
VAT rate applied
Net amount (excluding VAT)
VAT amount
Total credit amount (including VAT)

Credit Note vs Invoice

Attribute	Invoice	Credit Note
Purpose	Request payment	Reduce amount owed
Amount	Positive (money owed to seller)	Negative (money owed to buyer)
Effect on Accounts	Increases accounts receivable	Decreases accounts receivable
VAT Effect	Increases VAT liability	Reduces VAT liability
When Issued	After sale	After invoice (for returns/errors)
Customer Impact	Must pay seller	Receives refund or credit

Credit Note vs Credit Memo

Aspect	Credit Note (UK/EU)	Credit Memo (US)
Terminology	Credit Note	Credit Memo/Memorandum
Primary Use	UK, Europe, Commonwealth	United States
Tax Treatment	VAT/GST focused	Sales tax focused
Legal Requirements	Strict HMRC/EU regulations	State-specific requirements
Format	Standardized VAT format	More flexible format

Note: SendInvoice supports both credit notes and credit memos with region-appropriate formatting.

Common Scenarios

1. Product Return

Customer returns faulty product
Business issues credit note for full amount
VAT is adjusted automatically
Customer receives refund or account credit
Both parties update accounting records

2. Invoice Overcharge

Error discovered in invoice amount
Issue credit note for overcharged amount
Link to original invoice for reference
Customer's balance is corrected
New invoice issued if necessary

3. Post-Sale Discount

Discount offered after invoice issued
Credit note issued for discount amount
VAT adjusted proportionally
Customer pays reduced amount
VAT return reflects adjustment

4. Partial Return

Customer returns some items from order
Partial credit note issued for returned items only
Original invoice remains valid for kept items
Customer pays reduced balance

Technical Specifications

Platform Type: Web-based SaaS application
Pricing: Free (£0.00) - Free preview includes sending credit notes
VAT Compliance: HMRC compliant, EU VAT Directive compliant
Languages Supported: English (UK), Spanish, French, German, Portuguese, Dutch, Polish
Currencies Supported: 150+ with automatic formatting
Export Formats: PDF with professional layout
Numbering: Sequential auto-numbering (CN-, CR-, credit note prefix)
Data Storage: Cloud-based with automatic backup
Security: TLS 1.3 encryption, GDPR compliant

Target Users

UK Businesses: VAT-registered businesses requiring compliant credit notes
EU Traders: Businesses selling across EU borders
eCommerce Sellers: Online shops handling returns and refunds
Retailers: Shops processing customer returns
Wholesalers: B2B businesses handling trade returns
Service Providers: Businesses correcting billing errors
Accountants: Managing client credit notes and VAT returns

Statistics & Usage

Metric	Value
User Rating	4.9/5.0 (based on 856 reviews)
Average Creation Time	4 minutes
Most Common Reason	Product returns (48%), Invoice errors (32%), Goodwill (20%)
Active Users	6,800+ businesses worldwide

Developer Information

Created by: Assemblysoft Ltd
Location: United Kingdom
Website: https://assemblysoft.com
Launch Date: January 2025 (part of SendInvoice v2.0)

Contact & Resources

Main Website: https://www.sendinvoice.net
Credit Note Generator: https://www.sendinvoice.net/credit-note
App Access: https://app.sendinvoice.net

Key Facts Summary

Attribute	Value
Product Name	SendInvoice Credit Note Generator
Price	Free - Includes sending credit notes
Compliance	HMRC and EU VAT compliant
Developer	Assemblysoft Ltd (UK)
Main URL	https://www.sendinvoice.net/credit-note