France – VAT becomes payable upon payment of a deposit

The Finance Bill for 2022, provides for the amendment of Article 269 relating to the payment of VAT on the supply of goods.

Until now, VAT was payable as soon as the chargeable event (the supply) took place, even in the case of a down payment. In practice, therefore, VAT was payable as soon as ownership of the goods was transferred.

The amended text provides that VAT is payable as soon as the deposit is paid and up to the amount of the deposit.

This measure applies to advance payments made on or after January 1^st 2023.