# Credit Notes in Bulgaria: When and How to Issue Them (A Guide for International Businesses)

Source: https://ood.bg/en/blog/credit-note-bulgaria-vat-oodbg
Published: 2026-10-31 · Updated: 2026-10-31

## TL;DR
- A credit note is mandatory for any change to the taxable amount or VAT on an invoice in Bulgaria.
- It must include all invoice details, a reason for issue, and a reference to the corrected invoice.
- ood.bg automates the issuance, numbering, and archiving of credit notes, ensuring compliance.

## Key facts
- **When is a credit note required?:** A credit note is required for any correction to an invoice that affects the taxable base or VAT amount. (Art. 116 of the Bulgarian VAT Act)
- **What details must a credit note include?:** All invoice data, plus the reason for issue and a reference to the corrected invoice. (Art. 114, 115 VAT Act)
- **How does ood.bg help?:** ood.bg automates the creation, numbering, and tracking of credit notes in full legal compliance.

A credit note is a mandatory accounting document in Bulgaria whenever an already issued VAT invoice ("фактура") needs to be corrected, resulting in a change to the taxable amount or the VAT. By law, a credit note must include all the details of an invoice, the reason for its issuance, and a clear reference to the original invoice.

## What is a credit note in Bulgaria and when is it required?
A credit note ("кредитно известие") is an official document under Art. 116 of the Bulgarian VAT Act (ЗДДС). It is issued to correct an existing invoice—for example, when goods are returned, there is an error in the invoiced amount, or a transaction is cancelled. Issuing a credit note is compulsory whenever the taxable base or the VAT amount changes.

**Common situations requiring a credit note:**
- Goods returned by the customer
- Incorrect amount on the original invoice
- Full or partial cancellation of a transaction

**Source:** [NRA – Credit Note](https://nra.bg/document?id=4366)

## What legal requirements apply to credit notes in Bulgaria?
A credit note must include all mandatory invoice details as per Art. 114 and 115 of the Bulgarian VAT Act, plus:
- The reason for issuing the credit note (e.g., "goods returned", "amount correction")
- Reference to the corrected invoice (number and date)

**Mandatory details:**
| Detail                  | Description                                         |
|------------------------|-----------------------------------------------------|
| Number and date        | 10-digit sequential numbering                        |
| Supplier details       | Name, address, Bulgarian company number/VAT number   |
| Customer details       | Name, address, company number/VAT number             |
| Reason for issue       | Explanation for the correction                       |
| Reference to invoice   | Number and date of the corrected invoice             |
| Tax values             | Corrected amount and VAT                             |

**Source:** [VAT Act Art. 114, 115; VAT Regulations Art. 78](https://lex.bg/laws/ldoc/2135513678)

## How to issue a credit note in Bulgaria: Step by step
Follow these steps to issue a credit note:
1. Identify the invoice that needs correction.
2. Specify the reason for the correction (e.g., goods returned, amount error).
3. Create a credit note with all required details and a reference to the original invoice.
4. Enter the corrected amount and VAT.
5. Assign a 10-digit sequential number to the document.
6. Provide the credit note to the customer and record it in your accounts.

**Important:** You cannot directly amend an already issued invoice. It must be cancelled using a credit note. If needed, a new invoice can then be issued. ([NRA](https://nra.bg))

## Example: Issuing a credit note for partial goods return
Suppose you issued invoice №0000001234 for 10 items at 100 BGN each (total 1,000 BGN net, 1,200 BGN including 20% VAT). The customer returns 2 items.

| Document            | Quantity | Unit price | Net amount | VAT (20%) | Total incl. VAT |
|---------------------|----------|------------|------------|-----------|-----------------|
| Original invoice    | 10       | 100 BGN    | 1,000 BGN  | 200 BGN   | 1,200 BGN       |
| Credit note        | -2       | 100 BGN    | -200 BGN   | -40 BGN   | -240 BGN        |

**The credit note must include:**
- Reference to invoice №0000001234
- Reason: "Return of 2 items"
- Corrected amounts: -200 BGN net, -40 BGN VAT

## How does ood.bg automate and document credit notes?
ood.bg provides a fully automated workflow for issuing, numbering, and archiving credit notes. All required fields are filled in automatically, and the link to the original invoice is ensured without risk of omission. Each correction is tracked by number and reason, with separate numbering series for each company and office.

- All documents use a 10-digit sequential number as required by Bulgarian VAT law ([@page.features#docs]).
- Drafts are unnumbered and editable before issuance.
- ood.bg allows you to cancel an invoice with a credit note and specify the reason, without deleting the original document.

This ensures full legal compliance and easy tracking of all corrections. Learn more about ood.bg's document and reporting features in [documents and reports](https://ood.bg/en/features#docs).

## Frequently Asked Questions about Credit Notes in Bulgaria

**When must a credit note be issued?**  
A credit note is required for any change to the taxable base or VAT amount on an already issued invoice. This includes goods returns, amount errors, or transaction cancellations. ([NRA](https://nra.bg/document?id=4366))

**Can an invoice be corrected without a credit note?**  
No, corrections to an issued invoice are not allowed. The invoice must be cancelled by a credit note, and a new invoice issued if necessary. ([NRA](https://nra.bg))

**What details are mandatory on a credit note?**  
All invoice details, plus the reason for issue and reference to the corrected invoice. ([VAT Act Art. 114, 115](https://lex.bg/laws/ldoc/2135513678))

**How does ood.bg make issuing credit notes easier?**  
ood.bg automates the issuance, numbering, and archiving of credit notes, ensuring full legal compliance and traceability. All features are available in every subscription plan. See more in [documents and reports](https://ood.bg/en/features#docs).

**Can a credit note be issued for part of an invoice?**  
Yes, a credit note can correct part of the invoice values, for example, in the case of partial goods returns or amount corrections.

**How are credit notes numbered?**  
Credit notes are numbered with a 10-digit sequential number, with no gaps or duplicates, as required by the VAT Act. In ood.bg, this is handled automatically.

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For more information on issuing documents and reports, see [ood.bg's features](https://ood.bg/en/features#docs) and [VAT reporting](https://ood.bg/en/features#vat).


## FAQ

### When must a credit note be issued in Bulgaria?

A credit note is mandatory for any change to the taxable base or VAT amount on an already issued invoice. This includes goods returns, errors in the amount, or transaction cancellations. (Art. 116 VAT Act)

### Can an invoice be corrected without a credit note?

No, corrections to an already issued invoice are not permitted. The invoice must be cancelled with a credit note, and a new invoice issued if necessary. (NRA)

### What information must a Bulgarian credit note contain?

A credit note must include all invoice details, the reason for issue, and a reference to the corrected invoice. (Art. 114, 115 VAT Act)

### How does ood.bg simplify credit note management?

ood.bg automates the issuance, numbering, and archiving of credit notes, ensuring full legal compliance and traceability. All features are available in every subscription plan.

### Can a credit note be issued for only part of an invoice?

Yes, a credit note can be issued for part of the invoice values, such as in the case of a partial goods return or amount correction.

### How are credit notes numbered in Bulgaria?

Credit notes are numbered with a 10-digit sequential number, with no gaps or duplicates, as required by the VAT Act. In ood.bg, this is handled automatically.

## Sources
- [NRA – Credit Note](https://nra.bg/document?id=4366)
- [VAT Act Art. 114 and 115, VAT Regulations Art. 78](https://lex.bg/laws/ldoc/2135513678)
- [NRA – Invoicing Information](https://nra.bg)