VAT, Customs & Excises

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France: two important changes following the finance law for 2022

Penalty in the event of sales or services provision without invoice

The finance law for 2022 of December 30, 2021 was amended by article 1737, I, 1 and 3 of the CGI article 1737, I, 1 and 3 of the CGI concerning the sanction applicable in the event of sales or provision of services without invoice. This modification actually occurs following the censure of the Constitutional Council (QPC of May 26, 2021 n°2021-908) of the provisions relating to the penalty provided in the event of sale without invoice. From now on, article 1737, I, 1 and 3 of the CGI provides:

The application of a fine in the event of sales and/or provision of services which have not been invoiced. The fine incurred is however different depending on whether the uninvoiced transaction was recorded by the company or not.

  • In the event of non-invoicing and non-recognition of a sale or provision of services made: The applicable fine is 50% of the amount of the transaction, capped at €375,000 per fiscal year;
  • In the event of non-invoicing but recognition of a sale or provision of services carried out: The fine is reduced to 5% and may not exceed €37,500 per fiscal year

Below is a summary table:

Provision of services or uninvoiced + unrecognized salesFine 50% transaction amount Capped at €375,000 per fiscal year
Provision of services or uninvoiced + accounted salesFine 5% transaction amount Capped at €35,000 per fiscal year

Advance payment and liability for VAT for the supply of goods – Entry into force in January 2023

Currently and until December 31, 2022, VAT on the supply of goods is payable by the supplier at the time of carrying out this operation. Contrary to the provision of services for which the exigibility intervenes, as for it, during the collection of the installments of the price or the remuneration.

Following the adoption of the finance law for 2022 and from January 1, 2023, VAT on the delivery of goods will be payable as soon as the deposit is received, i.e. even before delivery.

As a result, VAT is payable up to the amount collected, which will lead to:

For the supplier/seller: the collection of VAT up to the amount of the deposit collected. It will be necessary to show the VAT on the deposit invoice, without waiting for the final invoice.

For the buyer: The possible deduction of VAT, up to the amount of the deposit paid, without having to wait for the final invoice.

Eurotax experts remain at your disposal to help you with your administrative procedures in France and Europe. Do not hesitate to contact us for any request concerning indirect taxation.

You can also consult our page for our tax representation / mandate service

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