Invoice paid with discount (service provision, VAT due on collection)

[svanteschubert]

Background

Invoice paid with discount on supply of services for which VAT is due on receipt of payment

French Use Case n°22a:
Invoice paid with discount for services for which VAT is due on collection

Discounting is an opportunity offered to customers to pay their invoices more quickly than expected, in exchange for a rebate. The amount of the discount does not appear on the invoice issued; only a statement detailing the discount conditions is shown on the invoice.

In the case of services, the administration will be able to take into account the discount granted thanks to the payment data transmitted. The "cashed" status will be enriched with the amount cashed (incl. VAT - discount).

For supplies of goods or operators who have opted for debits, as well as discounts net of tax, please refer to case 22b.

Figure 24: Invoice paid with discount (service provision, VAT due on collection)

The specific characteristics of the data and associated management rules are :

• Invoice note (BT-21/BT-22) with
  • Subject code: "AAB"
  • Text: mention discount

The specifics of the life cycle or process are :

• Transmission of flow 1 and e-reporting of payment data by supplier's platform
• The creation of a discount does not require the issue of a credit note if it is stated on the invoice that the deductible tax is limited to the price actually paid by the buyer.

The services offered by PPF are :

• Actors connected to the PPF will be notified of any change in invoice status.

The steps in case 22a are :

Step	Stage name	Responsible player	Description
	Invoice creation showing amount before tax, VAT, discount percentage and due date, as well as the amount of VAT deductible by the buyer	Supplier	The invoice is created by the supplier and sent to the buyer. At the same time, a flow 1 is sent by the supplier's PDP 1 to the PPF.
2	Receiving stream 1	PDP Supplier
3	Receipt of invoice	Buyer	The buyer receives the invoice, processes it and updates the invoice status according to the life-cycle procedure. Then, before the due date, he pays the supplier the amount including VAT reduced according to the percentage on the amount excluding VAT, and the VAT on this discounted amount excluding VAT. He updates the statuses via his MPS.
4	Processing and updating bylaws
5	Payment of invoice and update of articles of association
6	Receipt of invoice status	Supplier	The supplier receives the invoice status via his MPS and collects the invoice. He then updates the "cashed" status with the amount cashed after discount.
7	Collection
8	Update "cashed" status
9	Receipt of "cashed" status	Buyer	The buyer's PDP 2 provides him with the invoice's "cashed" status.
10	Receipt of payment data e-reporting flow	PPF	The supplier's PDP 1 accordingly sends the payment e-reporting flow to the PPF.

NOTE:
The above text was taken from case no. 22a 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)

[edmundgray]

The discount is reflected in the Invoice and the VAT calculations are reflecting this.
The Core has various means to show discounts; at header level and line level, also Price discounts given.
Document level allowance (BG-20)
Invoice line allowance (BG-27)
Price Discount (BT-147)