Which mentions must an invoice contain for the VAT to be deductible? In VAT, an invoice is not just a commercial document: it is the document that supports the tax charged by the seller and the tax deducted by the buyer. A missing or inaccurate mention can be enough to call a right of deduction into question, and exposes the issuer to a fine.
For a foreign company registered for VAT in France, or about to be (VAT registration in France), invoice compliance directly conditions the VAT returns. Here are the mentions to master.
Basic mentions
- the issue date and a unique number, in a continuous sequence;
- the name and address of the seller and of the customer;
- the seller’s VAT number and, for intra-Community or reverse-charge transactions, the customer’s;
- the date of supply of the goods or services, if different from the invoice date;
- the precise description, quantity and unit price excluding VAT;
- the VAT rate and amount per rate, as well as the total excluding VAT and including VAT.
Specific mentions, often forgotten
| Situation | Expected mention |
|---|---|
| Reverse charge | The “reverse charge” (autoliquidation) mention when the customer is liable for the tax |
| Exemption | The reference to the applicable provision, for example for an intra-Community supply |
| Special schemes | Margin scheme, option for the debit basis |
| Commercial mentions | Payment terms, late-payment penalties and fixed recovery indemnity |
These mentions concern precisely the most frequent transactions of a foreign company: intra-Community sales reported in the EC sales list, reverse-charge services and exempt sales.
Electronic invoicing: new mentions
The roll-out of electronic invoicing adds new mentions, such as the customer’s SIREN number, the delivery address if it differs from the billing address, or the nature of the transaction (goods, services or both). Your invoice templates must be updated.
Consequences of a non-compliant invoice
- For the issuer: each missing or inaccurate mention can be penalised by a fine, up to a ceiling.
- For the buyer: the risk is heavier. The authorities can refuse the deduction of the VAT shown on an irregular invoice, even if the tax was actually paid to the supplier.
Good invoicing habits for foreign companies
- Centralise templates. Use one validated template per type of transaction (domestic sale, intra-Community supply, reverse-charge service) rather than adapting invoices by hand.
- Check customer data upfront. Verify names, addresses and VAT numbers before issuing, since a wrong number is one of the most common causes of irregular invoices.
- Keep the supporting evidence. For exempt supplies, keep the documents that justify the exemption alongside the invoice.
- Review supplier invoices on receipt. Spotting a defect early lets you ask for a corrected invoice before the VAT is deducted.
Check before it is too late
A sample check of your issued and received invoices quickly identifies recurring defects and lets you correct your templates.
How Hanoutax can help
Hanoutax, a French VAT agent for foreign companies, carries out this check and gives you concrete recommendations. See our invoice compliance review service and our fiscal representative France page.
FAQ
What mentions are mandatory on a VAT invoice?
Notably the date and a unique number, the name and address of the seller and the customer, the seller’s VAT number, the description, quantity and unit price excluding VAT, the VAT rate and amount, and the totals excluding and including VAT.
Which mention is needed for reverse charge?
The “reverse charge” (autoliquidation) mention must appear when the customer is liable for the tax. For intra-Community or reverse-charge transactions, the customer’s VAT number must also appear on the invoice.
Does an irregular invoice cost me my right of deduction?
It can: the authorities may refuse the deduction of the VAT shown on an irregular invoice, even if the tax was actually paid to the supplier. The issuer, for its part, is exposed to a fine.
What does electronic invoicing change for mentions?
It adds new mentions, such as the customer’s SIREN number, the delivery address if it differs from the billing address and the nature of the transaction (goods, services or both). Invoice templates must therefore be updated.
How can I check that my invoices are compliant?
A sample check of your issued and received invoices identifies recurring defects and lets you correct your templates. It is worth repeating periodically, in particular after each regulatory change.
Need to check the compliance of your invoices?
Related reading
Informational content, not legal advice. The rules that apply depend on your situation.
