A craftsman works on the reconstruction of a house damaged by fire. As such, it charges for some of these works at a reduced VAT rate of 5,5 %. Realizing that he has made an error on the applicable VAT rate, the craftsman asks his customer to pay the difference between the sum already paid and that which should have been paid if the correct VAT rate had been applied.

The Court of Appeal accepted the craftsman’s application on the ground that the works invoiced and paid with a reduced VAT rate of 5.5% should have been subject to a standard rate of 19.6%. The client appeals to cassation. It submits that, in the event of an error in the rate of VAT charged, the difference between the sum paid and the sum normally chargeable must be charged to the trader, in his capacity not only as collector of the tax but also as a trader.

The Court of Cassation quashes and quashes the appeal judgment. It points out that a trader cannot claim additional VAT where he invoices at an incorrect rate, except if the parties have agreed to such a rectification or if the customer has incorrectly completed the tax certificate provided by the craftsman. In the present case, the Court holds that the works concerned were the subject of a quotation and an invoice mentioning the application of VAT at the reduced rate of 5.5%, without any agreement for a correction being invoked and without any error being noted in the tax certificate completed by the customer. Therefore, in order to carry out this work, the reduced rate of 5,5 % mentioned on the estimate and the invoice remains applicable.

Thus, except in exceptional circumstances, a craftsman who makes an error as to the applicable VAT rate may not subsequently apply for a higher VAT rate than that charged.