Understanding Draft Remittance for France

In France, drafts can be remitted to the bank on paper or electronically. When a draft is remitted to the bank, the bank charges a commission fee for processing the draft. The commission fee is subject to VAT (value-added tax). If the draft is discounted, the bank calculates an additional fee that is based on the actual due date. The fee for discounting is also subject to VAT. You must create manual journal entries for these VAT entries.