Invoices and documents

Debit note

A debit note is an e-invoice that increases the amount of an invoice you have already issued, for instance when you undercharged or added a cost afterwards. Like a credit note, it refers to the original invoice and gives a reason.

What it means

A debit note works in the opposite direction from a credit note. Where a credit note lowers what the customer owes, a debit note raises it. A wholesaler that invoiced a shop for a set number of cartons but delivered a few more does not reopen the first invoice; it issues a debit note for the extra cartons, so the original invoice stays as it was and the increase shows up separately, with its reason.

Because it is an e-invoice, a debit note is not a scrap of paper added to a file. It refers to the original invoice, states why the amount went up, and is handled like other e-invoices in Saudi e-invoicing. Under Phase 2 it takes the same route as the sale it relates to, so a note against a standard invoice is cleared. This means the increase does not remain a verbal agreement with the customer; it is recorded in a document that can be reviewed.

The practical test is simple: if the first invoice was too low, raise a debit note; if it was too high, raise a credit note. Check that your invoicing system can issue debit notes as well as credit notes, because both are e-invoices and you may need either one at short notice. If you are not sure which one you need, go back to the original invoice and compare its amount with what was actually delivered.

In practice

Use a debit note when the original invoice was too low or a cost came later.
Name the original invoice and state the reason in plain words.
Never alter the first invoice to add the extra amount to it.
Check that your system can issue a debit note before the day you need one.

Questions about Debit note

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

A credit note reduces or cancels an issued invoice, as with a return. A debit note increases it, as when goods or services were undercharged. Both are e-invoices, both refer to the original and both give a reason, so a changed amount can always be traced to the first sale.

Does a debit note have to refer to the original invoice?

Yes. A debit note is not a free-standing bill: it references the invoice it adjusts and gives a reason for the increase. That reference lets you, the buyer and ZATCA connect the extra charge to the original sale, and anyone reading it can see what changed and why.

Credit note Standard tax invoice Output VAT and input VAT

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