RFA accounting: complete guide 2026

Updated April 4, 2026 - RFA accounting is one of the most technical topics of the annual closing. Behind this acronym lies the end-of-year discount (or year-end rebate), a commercial reduction granted retrospectively based on the volume of business between a supplier and their client. In 2026, with tighter tax audits and new documentary traceability requirements, mastering the accounting, tax and VAT treatment of RFAs is no longer optional. At Hayot Expertise, we assist dozens of SMEs and traders each year in securing their year-end rebates.

Quick answer: in RFA accounting, the end-of-year discount is recorded in account 609 (RRR obtained on purchases) on the buyer's side and in account 709 (RRR granted on sales) on the supplier's side. If the credit note has not yet been issued or received by December 31, a regularization entry via accounts 4098 or 4198 is mandatory to comply with the principle of matching income and expenses to the financial year (ANC regulation No. 2014-03, article 311-1 of the PCG).

The end-of-year discount (RFA), also called a year-end rebate, is a price reduction granted by a supplier to their client once the reference period has elapsed. Unlike an immediate discount applied on the invoice, the RFA is calculated on the total volume of transactions carried out during the calendar year or the accounting period.

Its purpose is twofold: to retain the commercial partner and to encourage increased order volumes. These rebates are particularly common in retail, industry, wholesale trade and purchasing groups.

To extend, see Account 467, Irrecoverable debt: proof, VAT and accounting and Taxation and declarations: VAT, IS, advance payments.

RFA, rebate, discount, rebate: what are the differences?

The French General Chart of Accounts groups these reductions under the acronym RRR (rabais, remises, ristournes), but each concept follows a distinct logic:

• ▸Rebate (rabais): exceptional reduction granted to compensate for a quality defect, non-compliance or delivery delay. It is a one-off commercial gesture.
• ▸Discount (remise): reduction applied directly on the invoice, linked to the volume of a single order or the usual loyalty of a client.
• ▸Rebate (ristourne / RFA): reduction calculated a posteriori on the global volume of transactions over a period. It is the subject of a separate credit note from the initial invoices.

A year-end rebate simultaneously impacts several dimensions of your commercial accounting:

• ▸turnover (supplier side) or purchase expenses (buyer side);
• ▸VAT collected or deducted, which must be regularized;
• ▸the financial year closing, with the risk of misallocation;
• ▸third-party accounts (clients, suppliers) and regularization accounts.

The main trap lies in the time lag: the RFA relates to year N, but the credit note is often only issued or received in January N+1. The principle of matching income and expenses to the financial year (article 311-1 of the PCG) requires that the RFA be recorded in the accounts of the year to which it relates, even in the absence of a physical credit note.

Hayot Expertise Advice: a poorly documented year-end discount is almost always poorly accounted for. The central point is not only the account used, but proof of the right to the reduction and its correct attachment period. Always keep the commercial agreement, the volume statement and the corresponding credit note.

The calculation of an RFA is based on a contractual rate applied to the annual turnover excluding VAT achieved with the partner over the reference period. Some contracts provide for progressive scales with different rates depending on the thresholds reached.

Basic formula: RFA amount (excl. VAT) = Annual turnover excl. VAT × contractual rate

Concrete example with progressive scale

Martin SARL company makes 200,000 € in purchases excl. VAT from its main supplier. The RFA agreement provides:

• ▸2% on the range from 50,000 € to 100,000 €
• ▸3% beyond 100,000 €

Detailed calculation:

VAT at 20%: 800 € | Credit note amount incl. VAT: 4,800 €

For the company that benefits from the rebate, it represents a reduction in its purchase expenses. It is not a product to be recorded.

Case 1: the credit note is received before closing

Case 2: the credit note has not yet been received by December 31

You must record a unreceived invoice via account 4098 – RRR to obtain:

Important: this entry must be reversed on January 1 of the following financial year before recording the actual credit note upon receipt. Without this reversal, you risk recording the same reduction twice.

For the company that grants the rebate, it represents a reduction in its net turnover. It is not an additional expense.

Case 1: the credit note is issued before closing

Case 2: the credit note has not yet been issued by December 31

You must record a credit note to be established via account 4198 – RRR to grant:

VAT on year-end rebates follows precise rules defined by BOFiP (BOI-TVA-BASE-10-20-10). The taxable base for VAT is the price actually paid by the buyer. When an RFA reduces this price after invoicing, the initially calculated VAT is too high and must be corrected.

• ▸Supplier side: issuing the RFA credit note reduces the VAT collected. This correction is applied to the VAT return for the month of issue.
• ▸Buyer side: receiving the credit note reduces the deductible VAT. You must regularize your VAT return for the month of receipt.
• ▸VAT franchise case: if your company benefits from VAT franchise (micro-enterprise), the RFA has no VAT consequence. The credit note does not mention any VAT amount.

If you are a buyer:

• ▸has the RFA threshold provided for in your agreement been reached?
• ▸have you received the supplier's credit note? If so, has it been recorded?
• ▸if not, have you recorded the acquired RFA via account 4098?
• ▸have you properly regularized your deductible VAT?

If you are a supplier:

• ▸which clients have reached their contractual threshold?
• ▸have you issued all RFA credit notes?
• ▸if not, have you recorded the credit notes to be established via account 4198?
• ▸have you regularized your VAT collected on each pending credit note?

• ▸Premature recording: recording an RFA before the right is certain (threshold not reached at closing).
• ▸Forgetting the VAT impact: not regularizing deductible or collected VAT, creating a declaration discrepancy.
• ▸Suspense account without regularization: using a transit account (467, 471) without ever reclassifying the entry.
• ▸Missing reversal: not reversing the closing entry on January 1, resulting in double counting.
• ▸Missing commercial agreement: granting or receiving an RFA without a written contractual basis, weakening the position in the event of a tax audit.

We can help you review commercial agreements, validate the attachment to the correct financial year and secure the accounting and VAT treatment of your year-end rebates.

Quick link: Make your accounting and tax closing more reliable

<details> <summary>What is the difference between an RFA and a cash discount?</summary>

A cash discount (escompte) is a reduction granted for early payment (settlement before the due date). It is recorded in accounts 665 (discount granted) and 765 (discount obtained), in financial income and expenses. The RFA (end-of-year discount) is calculated on the volume of business achieved during the year, regardless of payment terms. It goes through accounts 709 and 609, deducting from turnover or purchase expenses. These two reductions have neither the same accounting treatment nor the same impact on intermediate management balances.

</details> <details> <summary>Is a credit note mandatory to materialize an RFA?</summary>

The credit note is the most widely used and legally secure form. It constitutes an opposing accounting and tax document, allows VAT regularization and serves as justification in the event of a tax audit. Technically, other forms are possible (transfer accompanied by a detailed statement), but the credit note remains the solution recommended by chartered accountants for its level of documentary security. The credit note must mention the RFA amount excluding VAT, the VAT rate and the corresponding VAT amount.

</details> <details> <summary>Does the RFA have an impact on corporate income tax?</summary>

Yes. On the supplier side, the RFA reduces net turnover and therefore the taxable profit for corporate income tax (IS) or income tax (IR). On the buyer's side, it reduces deductible purchase expenses, which mechanically increases the taxable result. These tax consequences apply to the financial year to which the RFA relates, even if the credit note is issued or received the following year. This is why regularization entries on December 31 are essential.

</details> <details> <summary>What to do if a client never claims their RFA?</summary>

If a client does not claim their rebate, the supplier's debt to them remains in the accounts. After the expiration of the commercial statute of limitations (five years, article L110-4 of the Commercial Code), the supplier can cancel this debt by reversing the entry. This operation generates an exceptional product subject to tax. It is therefore important to keep the 4198 entries until the end of this period and regularly check aging balances.

</details> <details> <summary>How to estimate the amount of an RFA before the end of the financial year?</summary>

To create a reliable regularization entry, apply the contractual rate to the cumulative volume of purchases or sales at the closing date. Base yourself on signed contracts, planned scales and actual volumes observed. This estimate must be reasonable and documented. In the event of a tax audit, the administration may ask on what basis the regularization was established. If the final amount of the credit note differs from the estimate, regularization is carried out upon receipt or issue of the credit note, in the current financial year.

</details>

RFA accounting is a classic but technical subject of annual closing. Well handled, the end-of-year discount faithfully reflects the commercial reality between the supplier and their client. Poorly managed, it creates discrepancies in results, VAT anomalies and documentary weaknesses that can be penalized during a tax audit.

Key points to remember:

• ▸the RFA is recorded in account 609 on the buyer's side and in account 709 on the supplier's side;
• ▸in the absence of a credit note by December 31, a regularization entry via accounts 4098 or 4198 is mandatory;
• ▸VAT must be regularized on the return for the month of receipt or issue of the credit note;
• ▸a written commercial agreement is essential to secure the RFA on the tax side;
• ▸the reversal on January 1 is mandatory to avoid any double counting.

Contact: Do you want to validate an RFA before closing your accounts? Our firm can help you frame the supporting document, the attachment period and the accounting and VAT treatment adapted to your situation. Make an appointment with Hayot Expertise

(Official sources: ANC regulation No. 2014-03 relating to the PCG, article 311-1; BOI-TVA-BASE-10-20-10 on price reductions; Commercial Code, article L441-3; Service-Public.fr - Calculation of tax result)