diff --git a/app/Http/Controllers/InvoiceController.php b/app/Http/Controllers/InvoiceController.php
index f6113d66a6..ab7b26e2db 100644
--- a/app/Http/Controllers/InvoiceController.php
+++ b/app/Http/Controllers/InvoiceController.php
@@ -785,7 +785,7 @@ class InvoiceController extends BaseController
                 }
                 break;
             case 'cancel':
-                $invoice = $invoice->service()->handleCancellation()->save();
+                $invoice = $invoice->service()->handleCancellation(request()->input('reason'))->save();
                 if (! $bulk) {
                     $this->itemResponse($invoice);
                 }
diff --git a/app/Http/ValidationRules/Invoice/RestoreDisabledRule.php b/app/Http/ValidationRules/Invoice/RestoreDisabledRule.php
index 6913967e4f..c7bd214081 100644
--- a/app/Http/ValidationRules/Invoice/RestoreDisabledRule.php
+++ b/app/Http/ValidationRules/Invoice/RestoreDisabledRule.php
@@ -27,7 +27,7 @@ class RestoreDisabledRule implements ValidationRule
     public function validate(string $attribute, mixed $value, Closure $fail): void
     {
 
-        if (empty($value) || $value != 'restore') {
+        if (empty($value) ||!in_array($value, ['delete', 'restore'])) {
             return;
         }
 
@@ -36,9 +36,13 @@ class RestoreDisabledRule implements ValidationRule
         $company = $user->company();
 
         /** For verifactu, we do not allow restores of deleted invoices */
-        if($company->verifactuEnabled() && Invoice::withTrashed()->whereIn('id', $this->transformKeys(request()->ids))->where('company_id', $company->id)->where('is_deleted', true)->exists()) {
+        if($company->verifactuEnabled() && $value == 'restore' &&Invoice::withTrashed()->whereIn('id', $this->transformKeys(request()->ids))->where('company_id', $company->id)->where('is_deleted', true)->exists()) {
             $fail(ctrans('texts.restore_disabled_verifactu'));
         }
+        
+        if ($company->verifactuEnabled() && $value == 'delete' && Invoice::withTrashed()->whereIn('id', $this->transformKeys(request()->ids))->where('company_id', $company->id)->where('status_id', Invoice::STATUS_CANCELLED)->exists()) {
+            $fail(ctrans('texts.delete_disabled_verifactu'));
+        }
 
     }
 }
diff --git a/app/Services/Invoice/HandleCancellation.php b/app/Services/Invoice/HandleCancellation.php
index 78d2196c2f..480f80cfef 100644
--- a/app/Services/Invoice/HandleCancellation.php
+++ b/app/Services/Invoice/HandleCancellation.php
@@ -13,6 +13,7 @@ namespace App\Services\Invoice;
 
 use App\Events\Invoice\InvoiceWasCancelled;
 use App\Models\Invoice;
+use App\Repositories\InvoiceRepository;
 use App\Services\AbstractService;
 use App\Utils\Ninja;
 use App\Utils\Traits\GeneratesCounter;
@@ -33,6 +34,10 @@ class HandleCancellation extends AbstractService
             return $this->invoice;
         }
 
+        if($this->invoice->company->verifactuEnabled()) {
+            return $this->verifactuCancellation();
+        }
+
         $adjustment = ($this->invoice->balance < 0) ? abs($this->invoice->balance) : $this->invoice->balance * -1;
 
         $this->backupCancellation($adjustment);
@@ -55,6 +60,59 @@ class HandleCancellation extends AbstractService
         return $this->invoice;
     }
 
+
+    private function verifactuCancellation(): Invoice
+    {
+
+        $replicated_invoice = $this->invoice->replicate();
+
+        $this->invoice = $this->invoice->service()->setStatus(Invoice::STATUS_CANCELLED)->save();
+        $this->invoice->service()->workFlow()->save();
+
+        $replicated_invoice->status_id = Invoice::STATUS_DRAFT;
+        $replicated_invoice->date = now()->format('Y-m-d');
+        $replicated_invoice->due_date = null;
+        $replicated_invoice->partial = 0;
+        $replicated_invoice->partial_due_date = null;
+        $replicated_invoice->number = null;
+        $replicated_invoice->amount = 0;
+        $replicated_invoice->balance = 0;
+        $replicated_invoice->paid_to_date = 0;
+
+        $items = $replicated_invoice->line_items;
+
+            foreach($items as &$item) {
+                $item->quantity = $item->quantity * -1;
+            }
+
+        $replicated_invoice->line_items = $items;
+
+        $backup = new \stdClass();
+        $backup->cancelled_invoice_id = $this->invoice->hashed_id;
+        $backup->cancelled_invoice_number = $this->invoice->number;
+        $backup->cancellation_reason = $this->reason ?? 'R3';
+
+        $replicated_invoice->backup = $backup;
+
+        $invoice_repository = new InvoiceRepository();
+        $replicated_invoice = $invoice_repository->save([], $replicated_invoice);
+        $replicated_invoice->service()->markSent()->sendVerifactu()->save();
+
+        $old_backup = new \stdClass();
+        $old_backup->credit_invoice_id = $replicated_invoice->hashed_id;
+        $old_backup->credit_invoice_number = $replicated_invoice->number;
+        $old_backup->cancellation_reason = $this->reason ?? 'R3';
+
+        $this->invoice->backup = $old_backup;
+        $this->invoice->saveQuietly();
+        $this->invoice->fresh();
+        
+        event(new InvoiceWasCancelled($this->invoice, $this->invoice->company, Ninja::eventVars(auth()->user() ? auth()->user()->id : null)));
+        event('eloquent.updated: App\Models\Invoice', $this->invoice);
+
+        return $this->invoice;
+    }
+
     public function reverse()
     {
         /* The stored cancelled object - contains the adjustment and status*/
diff --git a/app/Services/Invoice/InvoiceService.php b/app/Services/Invoice/InvoiceService.php
index a75af86a91..714fdea6bd 100644
--- a/app/Services/Invoice/InvoiceService.php
+++ b/app/Services/Invoice/InvoiceService.php
@@ -674,6 +674,15 @@ class InvoiceService
 
     }
 
+    //@todo - verifactu
+    public function sendVerifactu()
+    {
+        // if($this->invoice->company->verifactuEnabled()) {
+        //     (new SendVerifactu($this->invoice))->handle();
+        // }
+
+        return $this;
+    }
     /**
      * Saves the invoice.
      * @return Invoice object
diff --git a/app/Utils/Traits/Invoice/ActionsInvoice.php b/app/Utils/Traits/Invoice/ActionsInvoice.php
index cb5ab41388..37820d0f20 100644
--- a/app/Utils/Traits/Invoice/ActionsInvoice.php
+++ b/app/Utils/Traits/Invoice/ActionsInvoice.php
@@ -17,6 +17,11 @@ trait ActionsInvoice
 {
     public function invoiceDeletable($invoice): bool
     {
+        //Cancelled invoices are not deletable if verifactu is enabled
+        if($invoice->company->verifactuEnabled() && $invoice->status_id == Invoice::STATUS_CANCELLED) {
+            return false;
+        }
+
         if ($invoice->status_id <= Invoice::STATUS_SENT &&
             $invoice->is_deleted == false &&
             $invoice->deleted_at == null &&
diff --git a/lang/en/texts.php b/lang/en/texts.php
index dd3d41349d..ed1a8d977d 100644
--- a/lang/en/texts.php
+++ b/lang/en/texts.php
@@ -5574,6 +5574,7 @@ $lang = array(
     'selected_products' => 'Selected Products',
     'create_company_error_unauthorized' => 'You are not authorized to create a company. Only the account owner can create a company.',
     'restore_disabled_verifactu' => 'You cannot restore an invoice once it has been deleted',
+    'delete_disabled_verifactu' => 'You cannot delete an invoice once it has been cancelled',
 );
 
 return $lang;
diff --git a/tests/Feature/EInvoice/Verifactu/VerifactuApiTest.php b/tests/Feature/EInvoice/Verifactu/VerifactuApiTest.php
index 636628c727..2c3cf0f25a 100644
--- a/tests/Feature/EInvoice/Verifactu/VerifactuApiTest.php
+++ b/tests/Feature/EInvoice/Verifactu/VerifactuApiTest.php
@@ -11,6 +11,7 @@
 
 namespace Tests\Feature\EInvoice\Verifactu;
 
+use App\DataMapper\InvoiceItem;
 use Tests\TestCase;
 use App\Models\Client;
 use App\Models\Invoice;
@@ -45,6 +46,92 @@ class VerifactuApiTest extends TestCase
         $this->makeTestData();
     }
 
+    public function test_cancel_invoice_response()
+    {
+
+        $item = new InvoiceItem();
+        $item->quantity = 1;
+        $item->product_key = 'product_1';
+        $item->notes = 'Product 1';
+        $item->cost = 100;
+        $item->discount = 0;
+        $item->tax_rate1 = 21;
+        $item->tax_name1 = 'IVA';
+        
+        $invoice = Invoice::factory()->create([
+            'company_id' => $this->company->id,
+            'client_id' => $this->client->id,
+            'user_id' => $this->user->id,
+            'number' => 'INV-0001',
+            'date' => now()->format('Y-m-d'),
+            'due_date' => now()->addDays(100)->format('Y-m-d'),
+            'status_id' => Invoice::STATUS_DRAFT,
+            'is_deleted' => false,
+            'tax_rate1' => 0,
+            'tax_name1' => '',
+            'tax_rate2' => 0,
+            'tax_name2' => '',
+            'tax_rate3' => 0,
+            'tax_name3' => '',
+            'line_items' => [$item],
+            'discount' => 0,
+            'uses_inclusive_taxes' => false,
+            'exchange_rate' => 1,
+            'partial' => 0,
+            'partial_due_date' => null,
+            'footer' => '',
+        ]);
+        
+        $repo = new InvoiceRepository();
+        $invoice = $repo->save([], $invoice);
+
+        $invoice->service()->markSent()->save();
+
+        $this->assertEquals($invoice->status_id, Invoice::STATUS_SENT);
+        $this->assertEquals($invoice->balance, 121);
+        $this->assertEquals($invoice->amount, 121);
+        
+        $settings = $this->company->settings;
+        $settings->e_invoice_type = 'verifactu';
+
+        $this->company->settings = $settings;
+        $this->company->save();
+
+        
+        $data = [
+            'action' => 'cancel',
+            'ids' => [$invoice->hashed_id],
+            'reason' => 'R3'
+        ];
+
+        $response = $this->withHeaders([
+            'X-API-SECRET' => config('ninja.api_secret'),
+            'X-API-TOKEN' => $this->token,
+        ])->postJson('/api/v1/invoices/bulk', $data);
+
+        $response->assertStatus(200);
+
+        $arr = $response->json();
+
+        $this->assertEquals($arr['data'][0]['status_id'], Invoice::STATUS_CANCELLED);
+        $this->assertEquals($arr['data'][0]['balance'], 121);
+        $this->assertEquals($arr['data'][0]['amount'], 121);
+        $this->assertNotNull($arr['data'][0]['backup']['credit_invoice_id']);
+        $this->assertNotNull($arr['data'][0]['backup']['credit_invoice_number']);
+        $this->assertEquals($arr['data'][0]['backup']['cancellation_reason'], 'R3');
+
+        $credit_invoice = Invoice::find($this->decodePrimaryKey($arr['data'][0]['backup']['credit_invoice_id']));
+
+        nlog($credit_invoice->toArray());
+        $this->assertNotNull($credit_invoice);
+        $this->assertEquals($credit_invoice->status_id, Invoice::STATUS_SENT);
+        $this->assertEquals($credit_invoice->balance, -121);
+        $this->assertEquals($credit_invoice->amount, -121);
+        $this->assertEquals($credit_invoice->backup->cancelled_invoice_id, $invoice->hashed_id);
+        $this->assertEquals($credit_invoice->backup->cancelled_invoice_number, $invoice->number);
+        $this->assertEquals($credit_invoice->backup->cancellation_reason, 'R3');
+    }
+
     public function test_restore_invoice_validation()
     {