Credit Note
Nota de Crédito
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The English name for Nota de Crédito, a document that reverses or corrects a previously issued invoice when it can't be deleted or modified.
"Credit note" is the standard English term for what Portugal calls a Nota de Crédito: a document that undoes all or part of a previously issued invoice. If you've freelanced or run a business anywhere in Europe, you've probably encountered credit notes before. Portugal's version works the same way conceptually, but with stricter rules around certification and traceability.
Why credit notes exist in Portugal
Portuguese invoicing follows one unbreakable rule: issued documents are permanent. You cannot edit an invoice after issuing it. You cannot delete it. The tax authority (AT) has a record from the moment of creation, and the document chain must remain intact.
So when something goes wrong, you typed the wrong amount, the client cancelled the project, you applied 23% VAT instead of the correct exemption, a credit note is your only recourse. It's the system's built-in correction mechanism.
What makes it different from other countries
In many countries, a credit note is an informal commercial document. In Portugal, it's a certified fiscal document with the same legal weight as an invoice. It must be:
- Issued through AT-certified invoicing software
- Sequentially numbered in its own series (NC)
- Digitally signed as part of the document chain
- Reported to the tax authority
This means you can't create a credit note in a spreadsheet or send one as a PDF attachment in an email. It goes through the same certified system as your faturas.
Partial vs full credit notes
A credit note can reverse an invoice partially or fully. If you invoiced 1,000 euros but should have invoiced 800, you issue an NC for 200 euros referencing the original. If the entire transaction needs to be cancelled, you issue an NC for the full amount.
Either way, the original invoice remains in the system. The credit note doesn't erase it, it adds a correction on top. The tax authority sees both documents and calculates your net revenue and VAT liability from the complete chain.
For the full details on how Notas de Crédito work in Portuguese tax law, see the Nota de Crédito glossary entry.
Frequently asked questions
What is a credit note in Portuguese invoicing?
A credit note (Nota de Crédito, NC series) is a certified fiscal document that corrects a previously issued invoice. In Portugal, invoices are permanent, you can't edit or delete them. A credit note is the only legal way to reverse an overcharge, fix an error, or cancel a transaction.
Is a Portuguese credit note the same as in other countries?
The concept is the same (a document that reverses an invoice) but in Portugal it's a certified document issued through AT-certified software, sequentially numbered, and reported to the tax authority. It's not just a commercial courtesy; it's a legal fiscal event.
Do I need a reason to issue a credit note?
Yes. Portuguese law requires every credit note to include a correction reason, pricing error, service cancellation, goods returned, duplicate invoice, etc. You can't issue a blank or unexplained credit note.
Does a credit note trigger a refund?
It depends on whether the client already paid. If the credit note corrects an unpaid invoice (FT), it reduces the outstanding balance. If it corrects a paid invoice (FR or FS), it creates a refund obligation, you owe the client money back.
How does a credit note affect my taxes?
A credit note reduces your reported revenue and VAT liability for the period in which it's issued. The tax authority sees both the original invoice and the credit note, and calculates your net position from the full document chain.
Related terms
A certified fiscal document that corrects or partially reverses a previously issued invoice. Required in Portugal because invoices cannot be edited or deleted once issued.
FaturaInvoiceA formal invoice issued through certified software or the AT portal. For solo entrepreneurs on the simplified regime, income tax and Social Security remain cash-basis (tied to payment) regardless of when the invoice is issued.