The modification of the French administrative guidelines puts an end to an asymmetrical situation where the taxpayers had 2 years to claim incorrectly invoiced VAT and the French tax authorities had 3 years to reassess incorrectly deducted VAT. In case of a tax reassessment in the third year, the taxpayer who incorrectly invoiced the VAT could not claim it back from the French Treasury.
These new administrative guidelines specify that the reassessment of the incorrectly deducted VAT constitutes an “element motivating the claim” within the meaning of article R196-1 of the French Tax Procedures Book leading to the opening a new claim period for the supplier until December 31 of the second year following the taxable event (BOI-TVA-DECLA-30-20-20-30-20250108,§410). Consequently, the deadline for issuers to rectify incorrect invoices aligns with the deadline for the recipient to adjust VAT recovery.
In addition, the tax administrative guidelines expressly recognise that the taxpayer who incorrectly invoiced VAT does not need to justify that they made a mistake in good faith to claim for the reimbursement, provided that there is no risk of loss for the Treasury (§390).
Key takeaway
This modification provides an excellent opportunity to review internal processes and identify cases where VAT regularisation has not been carried out, due to the belief that it was statute-barred.
Reference
TVA - Précisions sur les conditions et modalités de régularisation de la taxe facturée à tort - Jurisprudences
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