How to Correct an Incorrect Tax Date on an Invoice

The tax date (also referred to as the invoice date) determines the VAT period in which the invoice value is accounted for—whether it is being claimed on a purchase invoice or declared on a sales invoice. Entering an incorrect tax date can cause discrepancies in your VAT returns, leading to errors in compliance, reporting, or reconciliation with HMRC.

This guide explains how to correct such errors accurately and in a VAT-compliant manner using a credit and reissue process.

Why It Matters

An incorrect tax date can:

• Misstate VAT returns for the relevant period

• Cause issues during audits or inspections

• Create mismatches between your VAT reports and accounting ledger

• Delay the recovery or payment of VAT

Correcting the issue promptly ensures the integrity of your VAT records and avoids penalties or complications.

Step-by-Step Correction Process

To correct the tax date on a posted invoice, follow these steps:

1. Raise a Credit Note

   • Create a credit note with the same tax date as the original (incorrect) invoice.

   • This ensures that the reversal is recorded in the same VAT period as the original error.

2. Apply the Credit Note

   • Match the credit note against the original invoice to cancel it out in full.

3. Repost the Invoice

   • Create a new invoice with the correct tax date.

   • Ensure all other details remain the same (e.g. supplier, amounts, VAT rate) unless changes are also required.

Example Scenario

• Original invoice: Dated 05/04/2025 (entered in the wrong VAT quarter)

• Correct date should be: 01/05/2025

You should:

• Post a credit note dated 05/04/2025 to reverse the error

• Re-enter the invoice dated 01/05/2025 to place it in the correct VAT period