Correction codes in SIGN ES: When should CORRECTION_1, CORRECTION_2, CORRECTION_3 and CORRECTION_4 be used?
When issuing a **CORRECTING**** invoice** via SIGN ES, it is mandatory to specify a correction code that identifies the legal grounds for the correction. These codes correspond to the provisions of Article 80 of the VAT Act (LIVA – Law 37/1992) and are translated internally into keys R1–R4 in the tax XML (Verifactu, TicketBAI or SII).
Key points regarding the corrective invoice
Section titled “Key points regarding the corrective invoice”| SIGN ES Code | Key | Reason | Legal basis |
|---|---|---|---|
CORRECTION_1 | R1 | Amount or VAT errors, returns, discounts, rebates, or price changes after the transaction | Art. 80.1, 80.2 and 80.6 LIVA |
CORRECTION_2 | R2 | The recipient has been declared insolvent (bankruptcy) | Art. 80.3 LIVA |
CORRECTION_3 | R3 | The debt is wholly or partially uncollectible | Art. 80.4 LIVA |
CORRECTION_4 | R4 | Any other reason not covered by the above (errors in non-financial data: VAT number, address, description, etc.) | Remaining cases |
Note: In the case of **SIMPLIFIED**** invoices**, SIGN ES automatically assigns key R5, regardless of the correction code specified. |
When to use each correction code
Section titled “When to use each correction code”CORRECTION_1 (R1) – Financial or tax corrections
Section titled “CORRECTION_1 (R1) – Financial or tax corrections ”Used when the correction affects amounts, tax quotas, or fiscally relevant elements of the transaction. This is the most common case.
Typical examples:
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The VAT rate applied was incorrect.
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Goods or packaging are being returned.
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Discounts or rebates granted after the transaction are being applied.
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The agreed price is modified after the transaction.
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The amount was provisional at the time of issue and the final amount is now known.
CORRECTION_2 (R2) – Insolvency proceedings
Section titled “CORRECTION_2 (R2) – Insolvency proceedings ”Used exclusively when the invoice recipient has been declared insolvent and the correction is made for this legal reason.
CORRECTION_3 (R3) – Uncollectible debts
Section titled “CORRECTION_3 (R3) – Uncollectible debts ”Used when the debt arising from the invoice is wholly or partially uncollectible and the legal requirements to modify the taxable base are met.
CORRECTION_4 (R4) – Remaining cases
Section titled “CORRECTION_4 (R4) – Remaining cases ”Used when the correction does not fit any of the above cases, for example to correct non-monetary data or other aspects not covered by R1, R2, or R3.
Typical examples:
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The recipient’s tax identification number was incorrect.
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The address was wrong.
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The description of the transaction contained errors.
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