Lump-sum payments and VAT: the French tax authorities reiterate key principles

VAT Chargeability on Goods: The French tax authorities clarified that VAT is generally chargeable upon the physical delivery of goods, emphasizing that supplies requiring successive statements or payments are limited to continuous services, like utilities, rather than point-in-time transactions for goods.
Definition of VAT Advance Payments: VAT is only chargeable on advance payments if they qualify as a VAT advance, meaning the goods must be clearly identified, and the completion of the transaction must be certain; otherwise, payments are considered cash advances without VAT implications.
Invoicing Requirements: Each supply of goods must be invoiced by the end of the month in which VAT becomes chargeable, and an annual summary invoice for prior deliveries does not meet the required VAT invoicing standards.