Box B5 of the VAT return: Important points to keep in mind

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General presentation of box B5

Box B5 is intended to accommodate corrections that affected the amount of your turnover. These include rebates, of holdings Or corrective invoices sent to your customers. These transactions change the amount originally reported and must be reported correctly to ensure that your return is compliant.

Details of the transactions concerned

Discounts and credits

• Rebates : Discounts granted to your customers after invoicing, for example to compensate for a quality defect or a delay in delivery.
• Assets : Documents issued to cancel or correct a previously issued invoice.

Important point about assets

It is important to note that sending a corrective invoice to a taxable customer not established in France, who has obtained a refund of the VAT incorrectly invoiced, is not allowed. Credits or rebates must be net of taxes.

example : If you are a French company and you have incorrectly charged VAT to a Swiss customer, the sending of a corrective invoice is not authorized if this customer has filed a refund request according to the procedure of 13th directive and has obtained the refund of this VAT.

What is the 13th Directive refund procedure?

La 13th Directive procedure allows companies established outside the European Union to be reimbursed for VAT incurred in an EU member state. To find out more about this procedure, we invite you to consult our Explanatory video dedicated.

The expert's point of view

How to report correctly in box B5?

• Do not enter a negative amount : It is essential not to steps enter negative amounts in box B5.
• Indicate the amount excluding taxes : Report the net amount of credit notes, rebates or corrective invoices.
• Related VAT : Indicate line 21 “Other VAT to be deducted” the corresponding VAT amount.
• Individualization of the amount : Specify this amount in the sub-heading “including adjustment of VAT collected”.

Difference between box B5 and box F8

Accruals to be reported in box B5 are not the same than those to be indicated in Box F8. Box F8 generally concerns adjustments related to VAT deductions, while box B5 relates to adjustments affecting turnover. Our dedicated video details these differences to help you avoid confusion.

Important points to keep in mind

• Identify appropriate adjustments : Only certain adjustments must be reported in box B5.
• Avoid reporting errors : Do not confuse the adjustments to be reported in box B5 with those in box F8.
• Do not use negative amounts : Always indicate the amounts in absolute values.
• Know the exceptions : Understand situations where the issuance of a corrective invoice is not authorized, in particular for customers not established in France who have obtained a VAT refund.
• Refer to additional resources : Our dedicated video sheds additional light on these points.

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