Description

A pre-payment is an advance payment for the delivery of goods or the completion of services. French tax law (Article 289-I.1.c from the CGI) requires an invoice for all pre-payments received before the taxable event occurs. VAT is due after pre-payment for both goods and services, even when the seller has opted for VAT on debits, a pre-payment specificity that differs from the general VAT rule.

Each pre-payment invoice is recorded in balance sheet accounts (customer advance payment for the seller, supplier advance payment for the buyer), not in the income statement. The line description can be a simple reference to a quote with a percentage, such as "30% pre-payment on quote xxx." For multiple VAT rates, you must create the corresponding number of pre-payment lines, on a pro-rata basis.

The norm (XP Z12-014 section 3.2.19) covers both use case 20 (pre-payment invoice) and use case 21 (final invoice after advance payment) in a single section, as they form a connected workflow.

Key characteristics

• BT-3 = 386 (required per XP Z12-014). 503 for credit note on pre-payment.

• BT-23 = B1/S1/M1 (goods, services, or mixed) to make the advance payment.

• Already-paid pre-payment variant: BT-23 = B2/S2/M2, with BT-113 = BT-112, BT-115 = 0.

• BT-9: Required when the pre-payment date is known and differs from the issue date (BR-FR-CO-06).

• VAT is due at receipt of the pre-payment for both goods and services, even with the VAT on debits option.

• Encaissée status must be transmitted when the pre-payment is received (services). For goods, transmission is accepted by the PPF and recommended.

• Even if BT-9 contains the pre-payment date, Encaissée must still be transmitted separately.

• Balance sheet accounting, not an income statement.

• Multiple VAT rates: separate lines per rate, prorated.

Relationship to other use cases

Use case 20 is closely linked to use case 21 (final invoice after advance payment), which references the pre-payment invoices. Use case 2 (already paid invoice) covers the already-paid pre-payment variant and its text explicitly states that "pre-payment invoices issued after payment are also considered paid invoices." Use case 22a and 22b may apply if the pre-payment invoice is paid with a discount. Credit notes on pre-payment invoices (BT-3 is 503) follow the same credit note rules as standard credit notes.

Business and tax context

Legal and regulatory framework

Article 289-I.1.c of the CGI requires an invoice for all pre-payments received. Article 242 nonies A I 10° of Annex II requires the pre-payment date on the invoice when known and different from the issue date. VAT is due at receipt for both goods and services (unlike standard invoices where the VAT for goods is upon delivery). BR-FR-CO-06 enforces BT-9 presence when the payment date is known and differs from the issue date. BR-FR-CO-07 lets BT-9 < BT-2 when BT-3 = 386.

Common business scenarios

Construction project

30% pre-payment before work begins, followed by progress invoices and a final invoice.

Service contract

Pre-payment before service delivery. Examples: moving company and consulting engagement.

Manufacturing

Pre-payment on custom-order goods before production.

Multiple pre-payments

Several partial pre-payments before the final delivery.

Tax and accounting implications

The pre-payment invoice is a balance sheet item, not a revenue or expense recognition. It creates a customer pre-payment liability for the seller and a supplier pre-payment asset for the buyer. VAT must be declared when payment is received, regardless of the delivery timing. The Encaissée lifecycle status triggers the VAT e-reporting payment data obligation.

Important: VAT on pre-payment invoices is due at receipt for both goods and services, even when the seller has opted for VAT on debits. This is a specificity of pre-payments. The Encaissée status must be transmitted even if BT-9 already contains the payment date. Source: XP Z12-014 section 3.2.19.

Key data requirements

Pre-payment invoice (to be paid)

Field ID	Description	Value
BT-3	Invoice type code	386 (required according to XP Z12-014)
BT-23	Billing framework	B1, S1, or M1 (goods, services, or mixed)
BT-113	Prepaid amount	0 (no previous payment for this pre-payment)
BT-115	Amount due	Full pre-paid amount
BG-3	Billing reference	Not present in the first pre-payment, may reference previous ones in subsequent pre-payments.

Pre-payment invoice (already paid at issuance)

Field ID	Description	Value
BT-3	Invoice type code	386 (required)
BT-23	Billing framework	B2, S2, or M2 (already paid)
BT-9	Due date	Pre-payment date (<= BT-2), which is required if known and different from the issue date (BR-FR-CO-06).
BT-113	Prepaid amount	= BT-112 (fully paid)
BT-115	Amount due	0

Implementation considerations

Seller considerations

• Use BT-3 = 386 (required). 503 for credit notes on pre-payments.

• Apply VAT per line, prorated for multiple rates.

• For both goods and services, you must transmit the Encaissée status when the pre-payment is received.

• Even if BT-9 contains the payment date, you must still transmit the Encaissée separately.

• For goods pre-payments, the PPF accepts and recommends the Encaissée transmission, even though this is not yet strictly required under the current texts.

• Track pre-payments for the final invoice creation (use case 21).

• You can use the line description to reference a quote. Example: "Acompte de 30% sur devis xxx".

Buyer considerations

• Record the pre-payment in the supplier advance payment account (balance sheet, not income statement).

• Track pre-payments for matching with the final invoice (use case 21).

• Deductible VAT applies when the invoice is pre-paid.

General considerations

• The issuer's Plateforme Agréée (PA-E) must support BT-3 = 386 validation and Flow 1 generation for pre-payment invoices.

• The Encaissée status must be supported immediately after Déposée for pre-paid invoices.

• Validate BT-9 presence when BT-3 is 386 and the payment date is known (BR-FR-CO-06 - business rule, not enforceable by Schematron).

SCI mapping

Field	SCI path
BT-3 invoice type	Invoice/InvoiceTypeCode
BT-23 billing framework	Invoice/ProfileID
BT-9 due date	Invoice/DueDate
BT-112 total TTC	Invoice/LegalMonetaryTotal/TaxInclusiveAmount
BT-113 prepaid	Invoice/LegalMonetaryTotal/PrepaidAmount
BT-115 payable	Invoice/LegalMonetaryTotal/PayableAmount