VAT on advanced and deferred payments in France

According to the new bill, advanced payments for the supply of goods will be taxable, a change that will likely take effect in July 2022. Similarly, installment payments would also be subjected to VAT. The proposed changes would link VAT to the moment of payment and not the moment of supply of goods. This change would not generate VAT costs but could heavily impact IT systems for many businesses. For smooth implementation of these changes, a period of six months would be granted to implement the reform.