Formal conditions for exercising the right of deduction – Information on purchase invoices

VAT – Right to deduct – Formal conditions for exercising the right of deduction – Information on purchase invoices

• VAT Deduction Conditions: The right to deduct VAT is contingent upon the issuance of an invoice that clearly states the tax amount, and it must meet specific legal requirements outlined in the French Tax Code.
• Invoice Requirements: Invoices must include essential details such as the identification of the parties, description of goods/services, transaction date, total amount excluding tax, and the corresponding VAT amount to be valid for VAT deduction.
• Special Cases: Certain transactions, such as those involving government agencies or educational institutions, have unique VAT treatment and may allow for specific procedures for issuing certificates that support VAT deduction.
• Intermediary Transactions: Different rules apply to intermediaries acting on their own behalf versus those acting on behalf of others, particularly regarding how they invoice and the right to deduct VAT.
• Legal Framework and Penalties: Failure to comply with the invoicing requirements or misrepresenting VAT can result in penalties, including potential criminal prosecution, emphasizing the importance of accurate documentation in VAT transactions.

Source gouv.fr