006. VAT: Invoicing Before Performance - Illicit Invoices, Advance Invoices

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In situations not involving payments on account (advance payments, down payments), the supplying entrepreneur generally must report and remit VAT at the end of the reporting period (usually the calendar month) in which the services are performed or the goods are delivered (time of performance). Normally, this is also the time at which the entrepreneur issues an invoice.

If an invoice with separately stated VAT is issued with respect to goods or services which have not yet been supplied, the issuer of the invoice is immediately required to remit the VAT amount stated in the invoice unless it qualifies as an "advance invoice" as explained below. Such an invoice (if not an advance invoice) is illicit and technically not an invoice at all, but rather a mere "invoice-like document" which does not entitle its recipient to a refund