Due date for VAT on advance payments as of January 1, 2023

In France, VAT on supplies of goods is due at the time of supply. For services, on the other hand, the payment triggers the tax liability for the supplying company and the deductibility for the service recipient.

In the case of services, the tax is thus due and deductible by the recipient in the amount of the advance payments made.

In the case of supplies, up to now advance payments had no effect on the due date of the tax.

This will change: For all advance payments received as from 01.01.2023, VAT will be due on the advance payments. In parallel, the customer can claim input tax in the month in which the advance payment was made.