Debit Note Generator

A debit note is a document the seller issues when the value of an invoice already issued goes up. The Zakat, Tax and Customs Authority defines it in the Detailed Guidelines for E-Invoicing as a note issued by the seller to correct the value of the supply or its tax for the customer, with debit notes used to increase the value of the original invoice or the VAT amount (clause 2.5). The Simplified Guideline for notes puts it more plainly: an adjustment that increases the invoice value.

When to issue a debit note

Whenever you find an invoice was issued for less than what was due: a price entered below the agreed one, a quantity delivered above what the invoice stated, a line forgotten, or extra charges that fell due after issue. The original invoice stays in force and the note adds to it.

Debit note versus credit note

• A debit note increases the value of the original invoice or its tax amount, so a further amount falls due from the buyer.
• A credit note reduces it, and is used for returns, discounts and downward price corrections (clause 2.6 of the same guidelines).

The reference to the original invoice

This is the field that makes the document a note rather than a second invoice. Clause 4.3 of the Detailed Guidelines states that credit and debit notes must be issued by reference to the original invoice or invoices already issued:

1. Enter the serial number of the original invoice in the reference field. The tool blocks the download until it is filled in.
2. If one note covers several invoices, the same clause permits entering the numbers as a range such as INV-001 — INV-005.
3. The date of the original invoice appears next to its number on the document and makes reconciliation easier at review.
4. The reason for issue is optional in this tool. No clause in the guidelines requires it, but writing it helps the buyer and the reviewer.
5. The value of the note is the difference alone, not the full corrected value of the invoice.

Worked example — upward price correction

You issued an invoice at 800 per unit for 10 units, then found the agreed price was 850. The difference is 50 per unit:

1. Value difference before tax: 50 × 10 = 500.
2. Tax on the difference: 500 × 15% = 75.
3. Debit note total: 500 + 75 = 575.
4. The original invoice is 8,000 before tax, and the net supply after the note is 8,500.

Common mistakes

• Issuing the note for the full corrected invoice value instead of the difference alone, which counts the supply twice.
• Issuing a second invoice for the difference instead of a debit note, which makes one supply look like two.
• Omitting the reference to the original invoice, which clause 4.3 requires.
• Applying a tax rate on the difference that differs from the rate on the original invoice.
• Using a debit note where a credit note belongs. Debit increases and credit reduces, and swapping them reverses the adjustment.

What this tool does not do

The tool produces a human-readable visual document carrying the reference to the original invoice and a QR code in the Phase One encoding. It is not an approved technical solution, and it does not implement the integration phase requirements of a cryptographic stamp and clearance through the Fatoora platform. To issue notes inside an integrated workflow, use invoicing software that complies with the specifications.