Regulatory changeIn effectVAT and consumption taxesNational

VAT due on receipt of down payments for supplies of goods

Article 30(I)(8) of the 2022 Finance Act amends Article 269 of the General Tax Code: when a down payment is made before a supply of goods, VAT becomes due when the down payment is received, up to the amount received, rather than on delivery. The rule applies to down payments received from 1 January 2023.

Measure originators

InitiatorGVT

Bruno Le Maire

Gouvernement

InitiatorGVT

Olivier Dussopt

Gouvernement

🇪🇺

European origin

Directive/Regulation

Directive 2006/112/CE du Conseil (article 65)

Context

Alignement sur la règle de la directive TVA relative à l'exigibilité en cas d'acompte

View European directive

Impact on public finances

No official estimate found for this measure.

Effective date

1 January 2023

Measure impact

Suppliers of goods receiving down payments pay over the corresponding VAT as soon as they are received, including for contracts ongoing on 1 January 2023; VAT-registered customers can deduct the VAT shown on the down-payment invoice.