edmundgray
commented
8 months ago This is already handled in the Core as follows; BT-113 Paid amount The sum of amounts which have been paid in advance. This amount is subtracted from the invoice total amount with VAT to calculate the amount due for payment. Rules = R40, R66
Background
French Use Case n°24: Managing deposits
Deposits are defined as sums paid by way of forfeit (article 1590 of the French Civil Code): in this case, the buyer may cancel the sale, renouncing his purchase by forfeiting this sum. If the deposit is an indemnity, i.e. does not constitute payment for a service (absence of consideration), it is not included in the taxable base for VAT.
In commercial matters, sums paid in advance more often take the form of a deposit on the sale price from which the parties cannot withdraw.
Deposits are compensation for commercial loss, and are not subject to VAT; they are not covered by e-invoicing or e-reporting. It is advisable to specify the nature of this sum in the contract or receipt given to the buyer.
NOTE: The above text was taken from case no. 24 of the PDFs - originally from the French government site: https://www.impots.gouv.fr/specifications-externes-b2b (see uses cases V2.2 & our translated use cases V2.3)