The fine of 50% for failure to invoice finally censored!

The fine of 50% for failure to invoice finally censored by the Constitutional Council (Art. 1737, I, 3. of the CGI).

For the record, these provisions impose a fixed tax fine of 50% of the amount of the transaction if, for a supplier liable for VAT, does not issue an invoice. The fine incurred is reduced to 5% of the amount of the transaction if the latter provides, within thirty days of the formal notice sent by the tax administration, proof that the transaction has nevertheless been duly recorded.

It has been held that these provisions infringe the principle of proportionality of penalties, since in practice the amount of the fine may be disproportionate in relation to VAT reminders.

➡️ These provisions will be repealed effective January 1, 2022. In the meantime, there is no doubt that the legislator will secure the taxpayer’s guarantees by providing for a ceiling and a rate that can be modulated according to the gravity of the infringement.

Source Arsene Taxand, VAT consultants, France

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