A deposit invoice is the invoice a recruitment agency issues for a payment requested before its assignment is complete, for example a third of the fees on signature. It carries the details of an ordinary invoice, the heading "Deposit invoice" and the reference of the contract. VAT is due when the client pays the deposit.
What follows applies to a recruitment assignment billed in several instalments: a retained search paid in thirds, a deposit then the balance when the candidate starts, or a deposit at the shortlist.
Article checked on 11 November 2026.
When to issue a deposit invoice
As soon as the agency asks for a payment before it has completed its service, and the client is a business. The French General Tax Code requires an invoice for deposits received before the service is performed. In practice, you issue it at the point set out in the signed proposal: signature, presentation of the shortlist, or any other stage written into the contract.
The most common payment schedules at an agency:
| Model | Deposit(s) | Balance |
|---|---|---|
| Retained search in thirds | 1/3 on signature, 1/3 at the shortlist | 1/3 when the candidate starts |
| Deposit and balance | 30% on signature | 70% when the candidate starts |
| Pure contingency | none | 100% when the candidate starts |
The payment schedule is set in the signed proposal. The deposit invoice refers to it, which avoids the discussion at payment time.
The details on a deposit invoice
A deposit invoice carries all the details of an invoice, with three additions: the heading "Deposit invoice", the reference of the signed proposal or contract, and the total amount of the assignment, to place the deposit in context. It has its own number, in the same sequence as the agency's other invoices.
The details on an invoice, in brief:
- unique number and issue date;
- the agency's identity: company name, legal form, address, SIREN number, intra-EU VAT number;
- the client's identity: company name, billing address, and its SIREN number with e-invoicing;
- description of the service: "Deposit on fees, recruitment of a sales director, proposal of 3 November 2026";
- amount excluding VAT, VAT rate and amount, total including VAT;
- due date, late-payment penalty rate and the fixed €40 recovery fee.
The full list, with the details added by the reform, is in our article on mandatory invoice details.
VAT on a deposit on fees
A recruitment fee is a provision of services. Unless you have opted to pay VAT on invoicing, its VAT becomes payable when the client pays: the VAT on a deposit collected in November is due in November, the VAT on a balance collected in February is due in February. VAT on the deposit is calculated on its amount, at the rate for the service, usually 20%.
With e-invoicing, this detail becomes data that is reported: the approved platform sends the tax authority the date and amount of each payment. A paid deposit gives one payment, the balance another. See e-reporting and Factur-X.
Example: retained search in thirds
On 3 November 2026, an agency signs a recruitment assignment with €24,000 in fees excluding VAT, payable in thirds. It issues three invoices, and the last one deducts the first two.
| Invoice | Date | Excl. VAT | VAT 20% | Incl. VAT |
|---|---|---|---|---|
| Deposit no. 1 (signature) | 3 November 2026 | €8,000 | €1,600 | €9,600 |
| Deposit no. 2 (shortlist) | 1 December 2026 | €8,000 | €1,600 | €9,600 |
| Balance (candidate starts) | 2 February 2027 | €8,000 | €1,600 | €9,600 |
The balance invoice shows the total for the assignment, €24,000 excluding VAT, then deducts the two deposits with their number and date, and bills only the difference. The client sees on one page what they have already paid.
If the assignment stops after the deposit
The signed proposal decides. If the deposit is non-refundable, nothing changes: it has been invoiced, collected and declared. If it has to be refunded, in whole or in part, the agency issues a credit note that cancels the amount concerned and its VAT, quoting the number of the deposit invoice.
You never delete an issued invoice, and you do not modify it. With e-invoicing, this is even clearer: a transmitted invoice cannot be withdrawn, it is corrected with a credit note.
The replacement guarantee follows the same logic. If the candidate leaves the job during the probation period and the agency presents a replacement, there is nothing to re-invoice. If the contract provides for a partial refund instead, that is a credit note.
In Marvin
Fees are entered on the placement, with a payment schedule if needed: a deposit, then the balance when the candidate starts. Marvin prepares each invoice as a draft with the client's billing details and the purchase order number; you review it and issue it. Credit notes are handled, and for a client established in France, the invoice can be sent as a draft to Pennylane, without duplicates.
See our invoicing software for recruitment agencies. For the reform timeline, see our article on mandatory e-invoicing.
FAQ
Does a recruitment agency have to issue a deposit invoice?
Yes, as soon as it asks for a payment before its service is complete and the client is a business. The French General Tax Code requires an invoice for deposits received before the service is performed. In practice, the deposit invoice goes out when the assignment is signed, before the payment.
When is VAT on a deposit invoice due?
A recruitment fee is a provision of services: VAT is due when the deposit is paid, unless the agency has opted to pay VAT on invoicing. It is calculated on the amount of the deposit, at the rate for the service, usually 20%.
What must a deposit invoice contain?
The same details as an ordinary invoice, plus the heading “Deposit invoice”, the reference of the signed proposal or contract and the total amount of the assignment. With e-invoicing, the client’s SIREN number and the transaction category are added.
How do you deduct the deposit on the balance invoice?
The balance invoice shows the total amount of the assignment, then deducts each deposit with its invoice number, its date, its amount excluding VAT and its VAT. The client pays the difference, and the VAT due on the balance applies to that difference.
What should you do if the assignment stops after the deposit?
If the contract states that the deposit is non-refundable, nothing changes. If it has to be refunded in whole or in part, the agency issues a credit note that cancels the amount concerned and the corresponding VAT. You never delete the deposit invoice.