RFA accounting: how to process an end-of-year discount?

Updated March 30, 2026 - In accounting, RFA most often designates an end of year discount granted based on a volume, a commercial objective or a contractual agreement. The accounting and tax treatment must be consistent with economic reality and with VAT.

An RFA is a price reduction granted retrospectively. It can concern a customer or a supplier depending on the logic of the contract. It must be linked to a documented commercial relationship and identifiable conditions.

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

An RFA affects both:

• ▸turnover or purchases;
• ▸VAT;
• ▸the fence;
• ▸sometimes regularization or third-party accounts.

Key questions to ask

• ▸Is the FRG certain of closure?
• ▸what is the contractual triggering event?
• ▸does the supporting document exist?
• ▸what is the exact impact on VAT?

Hayot Expertise Advice: a poorly documented end-of-year discount is often poorly recorded. The central point is not only the account used, but proof of the right to the reduction and its correct attachment period.

• ▸notice an RFA too early;
• ▸forget the VAT impact;
• ▸use a suspense account without regularization;
• ▸confuse commercial reduction and billing dispute.

We can help you reread the agreements, validate the connection and secure the accounting and VAT treatment.

Quick link: Make your accounting and tax closing more reliable

The RFA is a classic but technical topic of closure. Well treated, it reflects commercial reality. Poorly managed, it creates discrepancies in results, VAT and documentary justification.

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

(Official sources: ANC regulation 2022-06, BOFiP TVA, Public Service)