Debit Note Template
A debit note increases what a customer owes on an invoice you have already issued: a price charged below the agreed rate, goods or hours left off, or an increase agreed after invoicing. The original invoice stays as it is; the debit note gets its own number, quotes the original invoice number and date, explains the reason and bills only the difference plus tax on it. It is the opposite of a credit note, which reduces the amount owed. Be aware that the term is also used the other way round: in some businesses a buyer sends a 'debit note' to a supplier to record a deduction, for example for returned goods, and to ask for a credit note. That is a buyer's document, not the supplier's tax adjustment, so label which one you are sending. This download is an editable HTML file with fields for the debit note number, original invoice reference, reason, original and correct amounts, tax on the difference and amount now due. Fill it in your browser, then print it or save it as PDF.
Preview this editable document
Download the HTML file to edit its fields, then print or save as PDF. Totals are entered manually.
What This Template Includes
- Document title: Debit note
- Debit note number (its own series, for example DN-0024)
- Original invoice number and date
- Reason for the debit (undercharge, omitted item, agreed increase)
- Date the increase was agreed or the error found
- Original amount, correct amount and difference
- Tax rate of the original supply and tax on the difference
- Your VAT or GST registration number, if registered
How to Create Your Debit Note
- 01
Describe your work
Type a plain English description of the services you provided, the client, and the amount.
- 02
AI generates your invoice
InvoiceQuickly's AI drafts the client, line items, dates, and totals for you to review before saving.
- 03
Review, download, and send
Check every detail, download the PDF, or use Pro to email the PDF directly to your client.
Recommended Payment Terms
A debit note is payable like an invoice, so give it a due date. Most suppliers use the same terms as the original invoice; if the original was net 30, the debit note is normally net 30 from its own date. If the customer has already paid the original invoice, the debit note is the only amount outstanding, so say so: 'Original invoice INV-2207 paid in full on 3 November; this debit note is the balance of the agreed price.' If the customer has not yet paid, ask them to pay both together and quote both numbers on the remittance.
Need help writing payment terms? Read our guide to invoice payment terms for best practices and templates.
Tax Information
Tax on a debit note is charged only on the increase. In the UK, HMRC's VAT Notice 700, paragraph 18.2.4, says a valid debit note must reflect a genuine mistake or undercharge or an agreed increase in the value of the supply, be issued within 14 days of the increase being agreed, and show its own number and date, your name, address and VAT registration number, the customer's name and address, the number and date of the original VAT invoice, a description of the goods or services, the increase excluding VAT and the rate and amount of VAT; the rate is the one in force at the original supply's tax point (paragraph 18.2.5). In India, section 34(3) of the CGST Act requires a registered supplier to issue a debit note when the taxable value or tax on a tax invoice is less than payable, section 34(4) requires it to be declared in the return for the month of issue, and CGST Rule 53(1A) sets its particulars, including a consecutive serial number of up to 16 characters unique for the financial year. A template is only a layout. InvoiceQuickly has no debit note document type and copies saved business and client tax IDs to new invoice PDFs on its PDF. This is general information, not tax advice. Last reviewed October 2026.
Industry context (2026)
The name 'debit note' means opposite things in different businesses, which is why so many template pages contradict each other. In tax law it is the supplier's document: HMRC's VAT Notice 700 (paragraph 18.2.4) treats a valid debit note as the supplier's record of a genuine mistake, undercharge or agreed increase in the value of a supply, issued within 14 days of the increase being agreed, and India's CGST Act (section 34(3)) requires a registered supplier to issue a debit note when the taxable value or tax charged was too low. In purchasing, many buyers use 'debit note' (or 'debit memo') for their own record that they have debited a supplier's account, usually for returned or damaged goods, as a request for a credit note. Both uses are common; the tax rules only recognise the supplier's version as adjusting the supply. On the Indian side, CGST Rule 53(1A) also requires each debit note to carry a consecutive serial number of up to 16 characters that is unique for the financial year, so a separate DN series is the practical approach.
Worked example
Worked example (illustrative, UK, VAT at 20%): Calder Paper Supplies Ltd invoices a print shop on 6 October 2026, INV-2207, for 240 cartons of A4 paper at £21.50 each: £5,160.00 plus VAT £1,032.00, total £6,192.00, net 30. The contract price is £23.00 a carton; the old price was left in the order system. Calder raises it with the customer, who confirms the contract price by email on 14 October. On 20 October, within 14 days of that agreement, Calder issues debit note DN-0024, quoting 'Original invoice INV-2207 dated 6 October 2026; reason: price charged at £21.50 instead of the contract price of £23.00'. Lines: 240 cartons x £1.50 difference = £360.00; VAT at 20%, the rate at the original tax point = £72.00; amount now due £432.00, net 30 from 20 October. Check: £6,192.00 + £432.00 = £6,624.00, which is 240 x £23.00 = £5,520.00 plus 20% VAT of £1,104.00. INV-2207 is unchanged, and the customer can match DN-0024 to it line by line. If, separately, the print shop returns 12 water-damaged cartons, it is Calder that issues a credit note for them; the print shop's own 'debit note' for the return is only its request and record.
Common mistakes to avoid
Editing or reissuing the original invoice
Changing INV-2207 after it was sent leaves the customer's records and your VAT return out of step. Keep the original and issue a debit note for the difference.
No original invoice reference
A debit note that does not quote the original invoice number and date cannot be matched, and in the UK and India the reference is a required detail.
Using today's tax rate
Tax on the increase follows the rate that applied to the original supply, not the rate on the day you issue the note.
Sending a debit note when you mean a credit note
A supplier's debit note raises the amount owed; a credit note reduces it. If the customer is owed money back, issue a credit note.
Missing the 14-day window in the UK
HMRC expects a debit note within 14 days of the increase being agreed. Agree the increase in writing and issue the note promptly.
Invoicing Tips
- 1Number debit notes in their own series (DN-0001, DN-0002) so they are never confused with invoices, and never reuse the original invoice number with a suffix.
- 2Quote the original invoice number and date in the first line. The customer's accounts payable team will not approve a debit note they cannot match.
- 3Show the arithmetic: original price, correct price, difference, quantity, increase. A bare '£360 additional charge' gets queried.
- 4Use the tax rate that applied to the original supply, even if the rate has changed since.
- 5Agree the increase in writing before you issue the note, and put the date of that agreement on it. In the UK that date also starts HMRC's 14-day window.
- 6If you are the buyer recording a deduction, title the document 'Debit note (buyer)' or use 'Debit memo' and ask the supplier for a credit note; your document does not adjust the supplier's tax.
Related Resources
Frequently Asked Questions
What is a debit note?
A debit note is a document a supplier issues to increase the amount a customer owes on an earlier invoice, for example after an undercharge, an omitted item or an agreed price rise. It quotes the original invoice and charges only the difference plus tax on it.
What is the difference between a debit note and a credit note?
A debit note increases what the customer owes; a credit note reduces it, for example after returned goods, an overcharge or a discount agreed after invoicing. Both quote the original invoice and leave it unchanged.
Is a debit note a purchase return?
Sometimes the term is used that way. In many businesses the buyer sends a debit note to the supplier when it returns goods, recording that it has debited the supplier's account and asking for a credit note. The supplier's credit note is then the document that adjusts the sale. Make clear which kind of debit note you are sending.
Why would a supplier send a debit note?
To bill an amount that should have been on the original invoice: a price charged below the agreed rate, goods or hours left off, a freight or other charge omitted, or tax undercharged by mistake. It is also used when supplier and customer agree a price increase after the invoice was issued.
Is a debit note the same as a supplementary invoice?
In effect, yes, when the supplier issues it. Under India's CGST Act the Explanation to section 34 says a debit note includes a supplementary invoice. In the UK the term is usually debit note.
Can I just edit the original invoice instead?
Not once it has been sent. The customer may already have recorded it, and tax rules in the UK and India expect the adjustment to be a separate document that points back to the original. Issue a debit note for the difference.
Can InvoiceQuickly create a debit note?
Not as a separate document type. To bill an undercharge, create a new invoice for the difference and put the original invoice number and the reason in the line description or notes. Credit notes, which reduce an amount owed, are available on Pro. For a UK or Indian VAT or GST debit note with its own series and printed tax number, use this template or software that supports debit notes.