Retrospective effect of a corrected invoice

Does the correction of an invoice have a retrospective effect?

In dealing with this question, the ECJ held that the correction of a men-tion on an invoice does have a retrospective effect, so that the right to deduct VAT shall be exercised on the year during which the in-voice was initially issued, and not on the year during which the invoice was amended. National tax authorities may not charge default interest on the interim period as other more suitable sanctions, such as penalty fees, may be taken.

This judgment answering the question of the retrospective effect of a corrected invoice regarding the right to deduct VAT feels most welcome. It was advisable as it put an end to the Conseil d’Etat’s hesitant position (CE, 30 June 1982 n°20834, CE, 17 February 1982 n°19434).

Michel Guichard

Michel Guichard, Partner, leads the Indirect Tax activity. With more than 30 years’ experience in International and French Tax law, he advises his clients on indirect tax matters. Michel is […]

Odile Courjon

Odile Courjon, Partner, has developed a strong expertise in indirect tax issues (VAT, wage taxes, excise taxes, export control and customs) in France and overseas. She advises her clients in […]

Bertrand Jeannin

Bertrand Jeannin, Partner, supplies strategic and technical advice to French and foreign multinational groups in all aspects of their VAT and customs policies. Major focuses of Bertrand’s input involve the […]

William Stemmer

William Stemmer, Partner, has more than 15 years’ experience in Indirect Tax matters. William particularly specializes in the real estate and financial sectors. William is a lecturer at the University […]