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You sent an invoice of 12,000 DH including VAT, then the customer returns part of the goods, or you spot a pricing error. The first instinct: "I'll delete the invoice and issue a new one." That is exactly what you must not do. An issued invoice is an accounting and tax document: it is not erased, it is corrected by a credit note (an "avoir", or "note de crédit"), which is itself a numbered document.
Disclaimer: this article is an educational guide, not tax advice. The effect on VAT depends on your regime and your situation; have your entries validated by your chartered accountant.
1. Why an issued invoice is never deleted or modified
Article 145-III of the General Tax Code (CGI) requires you to give customers pre-numbered invoices drawn from a continuous series (or produced by a computer system in a continuous series). A number that disappears leaves a "gap" in the series: during an audit it is hard to justify and casts doubt on the completeness of your turnover.
On top of this comes the obligation to keep copies of sales invoices for ten years (article 211 of the CGI). The customer, for their part, may already have recorded your invoice and deducted the VAT: silently changing it would create two different versions of the same document.
Simple rule: what is issued is never modified, it is offset by a later, dated and numbered document.
2. The four classic situations
| Situation | Example | Type of credit note |
|---|---|---|
| Goods returned | The customer returns 3 items out of 10 | Partial credit note, possibly with return to stock |
| Discount granted after invoicing | 5% goodwill gesture for late delivery | Discount credit note (commercial gesture) |
| Invoicing error | Wrong price, wrong quantity, duplicate | Partial or full credit note, then a correct new invoice |
| Overpayment | The customer paid 1,000 DH too much | Credit note, then refund or credit kept |
3. Credit note or simple cancellation? The unpaid invoice case
If the invoice has not been paid and has not been validated by the DGI, no money has changed hands: rather than a full-cancellation credit note, you can simply cancel the invoice (it stays in the series with the status "cancelled", and its number is not reused). Your accountant may prefer a credit note in every case: follow their practice. As soon as the invoice is paid, even partly, or has been validated by the DGI (see below), the credit note is the right method.
4. Details to show on a credit note
The CGI does not lay down a specific form for credit notes: in practice, the same identification requirements as for an invoice (article 145-III) are applied to the credit note, with the link to the original invoice added. A complete credit note shows:
- the seller's identity, tax identification number, business tax (taxe professionnelle) number and ICE;
- the customer's name or company name, address and ICE;
- its own number, from a continuous series (for example CN-2026-0001);
- the credit note's issue date;
- the reference of the original invoice (number and date);
- the nature, quantity and price of the lines concerned, with VAT by rate;
- the amounts excluding VAT, VAT and including VAT, shown as negative or clearly identified as a credit note;
- the reason (return, discount, error, overpayment).
5. Effect on VAT: invoice-based (debit) or cash-receipts regime
When you grant a discount or take goods back after invoicing, the VAT initially collected must be adjusted downwards. VAT is assessed on the turnover actually achieved (article 96 of the CGI): when that turnover is reduced after the event, the credit note is what documents the adjustment. How to present it in your return is a matter for your accountant.
The effect differs according to your regime (article 95 of the CGI: cash receipts are the rule, the debit regime is an option):
- Invoice-based (debit) regime: VAT is due as soon as you invoice. A credit note of 1,200 DH incl. VAT (1,000 excl. VAT + 200 VAT at 20%) reduces VAT collected by 200 DH, in the period of the credit note.
- Cash-receipts regime: VAT is due only on receipt of payment. If nothing was received on the invoice, there is no VAT to reverse; if half was received, only the share of VAT already collected is adjusted.
Worked example. Invoice of 1,200 DH incl. VAT, of which 200 DH is VAT. The customer paid 600 DH, then you issue a full credit note.
- Under the cash-receipts regime, the VAT already collected is 100 DH: that is the amount adjusted, not 200.
- Under the debit regime, the invoice had generated 200 DH of VAT: the credit note reverses 200.
In every case, the original invoice stays in its own period and the credit note is deducted at its own issue date: the past is not rewritten.
6. Refund or credit kept?
When the credit note relates to money already received, the customer has three choices:
- Be refunded (transfer, cheque, cash within the limits: see cash payments in Morocco in 2026);
- Keep the credit for a future invoice;
- Apply the credit note to another unpaid invoice of the same customer.
The refund can be partial: the remainder stays available. If the credit note does not exceed what is still owed, it is simply applied to the invoice. Example: invoice of 1,000 DH, 400 DH paid, discount credit note of 300 DH → the invoice balance falls to 300 DH; no refund. Another example: invoice of 1,000 DH fully paid, credit note of 300 DH → 300 DH of customer credit, to be refunded or used later.
7. E-invoicing and the DGI
With electronic invoicing, an invoice validated by the DGI can no longer be "withdrawn": the correction goes through a credit note, also submitted to the DGI. As long as the DGI has not ruled on the invoice (pending or network error), issuing a credit note is premature. For the rules and timetable of e-invoicing, see the official sources below: they evolve.
8. Returned goods and stock
When the credit note reflects a genuine physical return, stock must follow, otherwise your theoretical quantities diverge from the actual ones. At issue you therefore need to decide whether the items go back into stock (item in good condition) or not (item destroyed, defective, discarded).
In practice with Billora
Billora handles credit notes without touching the original invoice:
- the credit note is created from the invoice, with its types (full or partial cancellation, commercial gesture, overpayment) and its own sequential number;
- unpaid invoice without e-invoicing: Billora invites you to cancel the invoice rather than issue a credit note;
- a partial or commercial credit note is applied automatically to the invoice balance; any excess becomes customer credit, refundable (even partly) or applicable to another invoice;
- if the invoice was validated by the DGI, the credit note takes effect only after its own validation; while the DGI has not ruled on the invoice, creating a credit note is refused;
- for returned goods, Billora can put the items back into stock at issue, if stock management is enabled;
- the VAT report takes the debit or cash-receipts regime into account, for information only: Billora is not accounting software, have your figures validated by your accountant.
Details: credit note documentation.
Frequently asked questions
Can I delete an invoice sent by mistake?
No, an issued invoice remains in the continuous series required by article 145-III of the CGI. If it is unpaid, you cancel it; if it is paid or validated by the DGI, you issue a credit note.
Must a credit note have its own number?
Yes. The credit note is a document in its own right, with a unique number in a continuous series and the reference of the original invoice.
What happens to VAT if the customer paid nothing?
Under the cash-receipts regime, no VAT having become due, there is nothing to reverse. Under the debit regime, the VAT invoiced is adjusted by the credit note. Your accountant validates the exact treatment.
How long after the invoice can I issue a credit note?
There is no specific time limit in the texts we consulted; in practice, issue it as soon as the reason is known, so that the VAT adjustment falls in the right period.
Can I refund a credit note in cash?
Only within the cash payment limits. Prefer a bank transfer: it leaves a trace.
Can a customer refuse the credit note and ask for a refund?
Yes if they have paid: the refund can be full or partial, and the remainder stays as credit.
Official sources
- General Tax Code, 2026 edition (Ministry of Economy and Finance, PDF): article 145-III (invoices, continuous series), article 211 (10-year retention), article 95 (VAT chargeable event: cash receipts or debits), article 96 (VAT taxable base);
- Directorate General of Taxes, tax.gov.ma: current CGI, circulars and news on electronic invoicing;
- Ministry of Economy and Finance: finance acts.
Further reading: how to issue a DGI-compliant invoice, filing VAT in Morocco.
Last updated: October 2026. The rules change with each finance act: check the current version of the CGI and have your situation validated by your chartered accountant.