Italian VAT credit note (article 26) as an e-invoice
When, after an invoice has been recorded, a transaction falls away in whole or in part or its taxable amount is reduced through nullity, annulment, revocation, termination, rescission, or contractually agreed allowances and discounts, the supplier is entitled to recover the corresponding Italian VAT (Iva) by issuing a downward variation note (credit note), under article 26, paragraph 2, of Presidential Decree 633/1972. If the reduction stems from a later agreement between the parties, the note must be issued within one year of the transaction. The variation note is an electronic document: it is sent to the Exchange System (SdI) like an invoice, and a customer who had recorded the purchase must in turn record the variation.
Up to date for 2026 — verified on September 25, 2026Official procedure, no printed formGuide: about 15 min
Deadlines
- Within one year of the transaction
- Deadline for a downward note when the event stems from a later agreement between the parties, and for correcting invoicing errors that led to the application of article 21, paragraph 7
Documents to prepare
- The original invoice, with number, date, taxable amount and VAT
- The contract or act justifying the variation (contractual discount, termination, insolvency or enforcement proceedings)
- Access to the Fatture e Corrispettivi portal or invoicing software connected to the SdI
- The VAT registers in which to record the variation
No form is attached to this procedure: the link leads to the official page that describes it.
What this page gives you
The guide above and the link to the official site. ActioFin does not produce any document for this page: whatever you fill in or file is done on the official medium.
Who this applies to
- A VAT-registered supplier who must reduce the taxable amount or tax of an invoice already issued and recorded
- Anyone who must increase the taxable amount or tax, including to correct invoicing errors: the invoice rules (articles 21 and following) then apply again
- A supplier not paid by a customer subject to insolvency proceedings or after an individual enforcement procedure that proved fruitless (paragraph 3-bis)
- The customer who had recorded the invoice, who must record the variation received
Worked example
Studio Neri Srl, Florence, grants a contractual discount to a customer
In March 2026 Studio Neri Srl issues through the SdI an invoice to Gallo Snc for a taxable amount of 10,000 euros plus 2,200 euros of VAT at 22% (the rate carried by the calcolo-iva calculator). The contract provides for a 10% discount once an order volume is reached, which happens in June. Studio Neri then issues an electronic credit note for a taxable amount of 1,000 euros and 220 euros of VAT, and sends it to the SdI. Studio Neri deducts the 220 euros by recording them under article 25; Gallo Snc, which had recorded the invoice and deducted the VAT, records the variation under article 23 or 24, within the 220 euros deducted.
How to fill it in, step by step
- Check the cause of the variation: nullity, annulment, revocation, termination, rescission, contractual allowances or discounts, non-payment due to insolvency or fruitless enforcement proceedings, or an increase in the taxable amount.
- If the reduction stems from a later agreement with the customer, check that one year has not passed since the transaction took place.
- Prepare the variation note as an electronic document, with the web procedure of the Fatture e Corrispettivi portal or your own software, entering under "Dati della fattura" the document type, number and date, and the taxable amount and VAT of the variation.
- Use your active VAT number: a variation note compiled with a closed VAT number is rejected by the SdI.
- Send the note to the SdI and check the receipt: with a delivery receipt or a receipt of failed delivery the document counts as issued; with a rejection receipt it must be corrected and sent again.
- Record the downward variation under article 25 and deduct the corresponding VAT under article 19.
Good to know
- A downward note is an option for the supplier ("is entitled to deduct"); an upward variation is an obligation, under the invoice rules.
- For continuous or periodic supply contracts terminated for non-performance, the note does not extend to supplies for which both parties performed correctly.
- In insolvency proceedings the customer is not required to record the variation (paragraph 5); if the price is paid after the note, the supplier applies an upward variation and a customer who had recorded the variation may deduct the corresponding tax.
- An individual enforcement procedure counts as fruitless, for example, when the attachment report shows there are no assets to seize, or after three auctions have gone unanswered.
- The note's date is what counts: a variation note dated in a period subject to mandatory e-invoicing must be electronic even if the original invoice was not.
- Article 26 of Presidential Decree 633/1972 is shown as repealed by the consolidated VAT act (Legislative Decree of 19 January 2026, no. 10): this guide describes the text applied in 2026, to be rechecked when the consolidated act applies.
- The document type to use for a credit note is listed in the Agenzia's "Guida alla compilazione delle fatture elettroniche", a PDF this guide identifies but has not read.
Common mistakes
- Issuing a credit note more than one year after the transaction when the reduction stems from a later agreement with the customer.
- Sending the variation note as a PDF or by e-mail instead of through the SdI.
- Compiling the note with a closed VAT number: the SdI rejects it.
- As a customer, forgetting to record the variation received and keeping the VAT deduction on the whole invoice.
- Issuing a credit note to correct an amount upwards: the invoice rules apply again in that case.
Frequently asked questions
When can an Italian VAT credit note be issued?
When a transaction already invoiced and recorded falls away in whole or in part, or its taxable amount is reduced, through nullity, annulment, revocation, termination, rescission and the like, or contractual allowances and discounts; and in case of non-payment due to insolvency or fruitless enforcement proceedings.
Is there a deadline for the credit note?
Yes, if the event stems from a later agreement between the parties: the downward variation cannot be applied after one year from the transaction.
Must the credit note be electronic?
Yes: like the invoice, the variation note is issued electronically and sent to the Exchange System; if rejected, it must be corrected and sent again.
What must a customer receiving the credit note do?
If the purchase was already recorded, record the variation under article 23 or 24 of Presidential Decree 633/1972, within the deduction made, without prejudice to the right to recover what was paid to the supplier as VAT charged on. This obligation does not apply in insolvency proceedings.
Go further
Compute the related amounts
Understand this form: the related course
Official sources
- Gazzetta Ufficiale — Presidential Decree of 26 October 1972, no. 633, article 26 "Variations of the taxable amount or of the tax", version 16 (last non-repealed; version 17 carries the repeal by Legislative Decree of 19 January 2026, no. 10) — September 25, 2026
- Agenzia delle Entrate — E-invoicing FAQ: compiling the electronic invoice (variation notes with a closed VAT number) — September 25, 2026
- Agenzia delle Entrate — E-invoicing FAQ: issuing electronic invoices (electronic variation notes) — September 25, 2026
- Agenzia delle Entrate — E-invoicing guide: what the Exchange System does — September 25, 2026
- Agenzia delle Entrate — E-invoicing guide: how to prepare an e-invoice — September 25, 2026
Guide and document provided for information purposes only; they do not constitute personalised legal or tax advice. Check the recipient organisation's requirements and consult a professional if needed.