What is a credit note?

A document the seller issues to reduce or cancel an invoice already sent: because goods came back, the price was wrong, a discount was agreed afterwards, or a service was cancelled. It references the original invoice and states the amount credited. The client offsets it against that invoice or the next one, or you refund it.

Why not just edit the invoice?

An issued invoice is part of a sequence and, once your business is on NRS e-invoicing, is validated and stamped. Editing it breaks the sequence, and an altered validated invoice will be rejected. A credit note adjusts the record without touching it.

Does the credit note reverse VAT?

If the original invoice charged 7.5% VAT, the credit note must credit the same VAT on the amount reduced, so your output VAT for the period falls by that amount. Tick VAT on the generator and it works it out.

How should I number credit notes?

Their own sequence, CN-2026-001 onwards, each referencing the invoice it adjusts. Do not reuse invoice numbers.

What is the difference between a credit note and a refund?

A credit note is the document that records the reduction. A refund is money going back. You can issue a credit note and settle it by refund, or by reducing the next invoice. Either way the credit note is the paperwork.

Does the client need to sign it?

No. Send it and keep a copy with the invoice. The client records it on their side as a reduction in what they owe you.

Free Credit Note Generator (Nigeria)

When an invoice you already sent needs reducing, do not edit it. Issue a credit note that points at it, says why, itemises the credit and reverses the VAT.

Free
No sign-up
Nothing uploaded
Updated for 2026
Updated September 2026

Your business

Business name

Address

Phone

TIN

Lets clients remit withholding tax in your name.

CAC number (RC or BN)

Shown on the document header.

Logo (optional)

PNG or JPG, under 400 KB. Prints at the top of the PDF and stays on this device.

Client

Client name

Address

Phone

TIN

Optional. Needed if they will deduct WHT.

Credit note number

Date

Original invoice date

Currency

Defaults to NGN. Change it to bill a client abroad.

Original invoice number

Reason for credit

Returned goods, overcharge, discount agreed after invoicing, cancelled service.

Items

Description

Qty

Unit price (₦)

Credit includes VAT at 7.5%Tick if the original invoice carried VAT. The credit note must reverse the same VAT.

Notes and terms

How it works

01
Reference the original invoice
Enter the invoice number and date the credit relates to. A credit note that points at nothing is an accounting question later.
02
State the reason
Returned goods, an overcharge, a discount agreed after invoicing, a cancelled service. One line is enough.
03
List what is credited
Only the lines being reduced, at the invoiced price. If the invoice carried VAT, tick VAT so the credit reverses it too.
04
Issue and record
Download the PDF, send it to the client and keep it with the invoice. The client offsets it against that invoice or the next one.

What makes it different

Never edit a sent invoice

Changing an issued invoice breaks your sequence and, under e-invoicing, will be rejected. A credit note is the correct instrument.

VAT reversed correctly

Where the invoice charged 7.5% VAT, the credit note reverses the same VAT, which is what your VAT return needs.

Sequential and referenced

CN-2026-001 onwards, each pointing at the invoice it adjusts. That is the trail the NRS expects.

Questions people ask

What is a credit note?: A document the seller issues to reduce or cancel an invoice already sent: because goods came back, the price was wrong, a discount was agreed afterwards, or a service was cancelled. It references the original invoice and states the amount credited. The client offsets it against that invoice or the next one, or you refund it.
Why not just edit the invoice?: An issued invoice is part of a sequence and, once your business is on NRS e-invoicing, is validated and stamped. Editing it breaks the sequence, and an altered validated invoice will be rejected. A credit note adjusts the record without touching it.
Does the credit note reverse VAT?: If the original invoice charged 7.5% VAT, the credit note must credit the same VAT on the amount reduced, so your output VAT for the period falls by that amount. Tick VAT on the generator and it works it out.
How should I number credit notes?: Their own sequence, CN-2026-001 onwards, each referencing the invoice it adjusts. Do not reuse invoice numbers.
What is the difference between a credit note and a refund?: A credit note is the document that records the reduction. A refund is money going back. You can issue a credit note and settle it by refund, or by reducing the next invoice. Either way the credit note is the paperwork.
Does the client need to sign it?: No. Send it and keep a copy with the invoice. The client records it on their side as a reduction in what they owe you.

Read the rule behind the number

When a document is not enough

A document is a one-off. Books are every month.

Download and you are done. Save to ereQa and the invoice sits in your books, gets matched to the payment when it lands, and is ready for your accountant and for e-invoicing.

See ereQa