French VAT Rectification: New Rules for Incorrectly Charged VAT

• French tax administration issued a publication clarifying conditions for amending VAT invoices with incorrect French VAT.
• Businesses charging VAT are liable to pay it, even if wrongly charged.
• Customers cannot deduct wrongly charged VAT.
• New rules allow invoice issuers to regularize incorrect VAT under specific conditions.
• French tax administration removed the condition of proving a genuine error for incorrect VAT charges.
• Suppliers can rectify French VAT within two years, while authorities had three years to reexamine invoices.
• Challenging input VAT deduction opens a new claim period for suppliers until the 31st December of the second year following the challenge.
• This allows suppliers to rectify invoices and customers to regularize input VAT deduction.
• The publication recognizes that questioning input VAT deduction justifies issuing a rectified invoice.
• Suppliers can issue amended invoices without VAT or regularize incorrect VAT by 31st December 2027.
• Businesses should review and identify scenarios where French VAT has not been regularized to ensure VAT compliance.

Source: meridianglobalservices.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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