📌 What is a SEPA Direct Debit Mandate?

A SEPA Direct Debit (SDD) mandate is an authorization allowing the French tax office to automatically collect VAT payments from your bank account. This ensures timely payments and helps avoid penalties.

✅ Is a SEPA Mandate Mandatory?

If your bank account supports SEPA Direct Debit, setting up a mandate is mandatory to ensure smooth VAT payments in France. While some businesses prefer manual payments, failing to set up a SEPA mandate may lead to penalties if payments are not received on time.

📝 How to Complete and Submit the SEPA Mandate

To authorize SEPA payments, follow these steps:

1️⃣ Check the details on the mandate form. Ensure that your business name, address, IBAN, and other required fields are correctly filled out.
2️⃣ Sign the mandate in the designated red circle (🔴). The signature must match the account holder's details.
3️⃣ Submit the form to your bank for validation and signature (if required).
4️⃣ Ensure the bank registers the mandate before any payments are made. The tax office cannot process payments unless your bank has confirmed the mandate.
5️⃣ Keep a copy of the signed document for your records.

⏳ When Will the Payment Be Processed?

• Once the mandate is validated, the French tax office (DGFiP) will automatically collect VAT payments based on your return submission.

• If the mandate is not confirmed by your bank, the payment will not be processed, and you may receive a penalty.

⚠️ Important Notes

• If you fail to set up a SEPA DD mandate, your VAT payments will need to be made manually before the 17th of each month to avoid penalties.

• Double-check with your bank to confirm they have received and processed the mandate.

• A missing or incorrect mandate may lead to rejected payments and potential legal or financial consequences.

If you have any doubts or require assistance, please consult with your bank or tax advisor.

🚀 Stay compliant and avoid penalties by setting up your SEPA DD mandate today!