Open svanteschubert opened 1 year ago
Invoices with a contractual reserve clause in France are typically associated with the concept of "retention of title". This means that the seller retains ownership of the goods until full payment is received
In the context of an invoice, this clause would specify that the goods being sold remain the property of the seller until the buyer has paid the invoice in full. This can provide the seller with some protection in case the buyer defaults on payment.
Sources (1) Legal terms for payments in France | CMS Expert Guides (2) France – Terms of payment in an international agreement. . (3) Mandatory character of French payment terms in an international contract.
The issue here is; Is this handled the same in each country - In Ireland it is simply stated in the Note field
Is this linked to #9 ?
In Austria this is "Haftrücklass".
Background
Invoices with contractual reserve clause
French Use Case n°26: Invoices with contractual reserve clause
Case of invoices 95% paid by the customer with a contractual reserve clause generating a 5% withholding.
Deliveries of goods :
In the absence of e-reporting of payment data, this deduction has no VAT impact until it becomes definitive. In the case of supplies of goods, the amount collected has no impact on VAT liability. The supplier must issue a credit note in the event of a holdback.
Services :
Payment data taken into account indirectly via e-reporting. Only amounts collected are subject to VAT. E-reporting of payment data: partial payment of 95% taken into account. Withholding of 5% to be declared once paid. In the case of partial payment, only VAT on the amount collected will be due. The supplier must issue a credit note in the event of the retention of guarantee. In the absence of payment of the 5%, no e-reporting of payment of the remaining 5%.
NOTE: The above text was taken from case no. 26 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)