E-invoicing in France: A guide to upcoming obligations

E-invoicing, or electronic invoicing, is the process of issuing, sending, and receiving invoices in electronic format. In France, the introduction of mandatory e-invoices for B2B (business-to-business) transactions is part of a broader initiative to modernize and digitize the economy. Since January 2020, e-invoices have been mandatory for transactions with public administration (B2G). The new regulations concerning e-invoicing and e-reporting were initially set to take effect in July 2024, but the French government decided to postpone this to September 2026.

Postponement of e-invoicing and e-reporting implementation

The decision to postpone the mandatory implementation of e-invoices and e-reporting was made on July 28, 2023. Originally planned for July 2024, the new regulations will be phased in as follows:

• September 1, 2026: Implementation for large and medium-sized taxpayers, along with the requirement for all companies to be ready to receive e-invoices.
• September 1, 2027: Implementation for small and medium-sized enterprises.

For information on the implementation timelines for mandatory e-invoicing in other EU countries, please refer to our article: Mandatory e-invoicing for B2B and B2G in Europe: Implementation deadlines.

Which companies will be affected by e-invoicing obligations?

The e-invoicing obligation applies to companies registered in France that engage in domestic sales and purchase transactions. E-invoices will be mandatory for all domestic transactions (sales, purchases, and service provision) between VAT-registered companies in France. Transactions not subject to VAT will not be included in the mandatory e-invoicing or e-reporting requirements.

New technical specifications for e-invoices

In June 2024, new technical specifications for e-invoices in France were announced. This document was developed in consultation with various stakeholders, including companies and technical experts. The aim of these consultations was to clarify certain aspects of the e-invoicing system, add new elements, and introduce features to facilitate future users’ interaction with the system.

Key changes in the specifications include:

• Simplified data flows: Reduction of data exchange to one consultative flow and one modification flow.
• Historical function: Ability to track the history of invoices.
• Invoice status management: Ability to monitor invoice statuses.
• Rounding option: Particularly important for calculating VAT at the invoice line level.

How to submit e-invoices in France

Companies can apply for registration as certified service providers or dematerialization platforms for French e-invoicing and e-reporting. Upon registration, they will receive a registration number and can operate as partner dematerialization platforms (PDPs). The relevant tax office for this procedure is DGFiP in Lille.

Submitting e-invoices: The Chorus Pro platform

Chorus Pro is the electronic platform used for submitting e-invoices in transactions with the public administration in France. It is expected that a similar platform will be used for submitting B2B e-invoices to the French tax authorities. Electronic invoices will be sent to the business customer via a dematerialization platform, which can be either a public portal or a private electronic platform. These platforms will act as intermediaries, converting the format of the invoice issued by the supplier into a format suitable for the recipient.

Benefits of implementing e-invoicing

Implementing e-invoicing brings several benefits for companies, including:

• Reduction of administrative burdens: Automation of invoicing processes.
• Lower invoicing costs: E-invoices are cheaper than traditional paper invoices (approximately €3 for e-invoices compared to €12 for paper invoices).
• More accurate invoice monitoring: Easier tracking and management of invoices.
• Reduced risk of VAT fraud: Better control over tax documents.
• Easier VAT return preparation: Possibility of automatic VAT return completion.

E-reporting in France

E-reporting is the obligation to declare sales that are not subject to French e-invoicing. This includes exports, imports, sales to private individuals (B2C), intra-community deliveries, and acquisitions. The e-reporting implementation schedule is the same as for B2B e-invoicing.

Impact of e-reporting on foreign companies

Foreign companies are subject to e-reporting obligations when they conduct taxable transactions in France for which they must charge French VAT. Typical scenarios include:

• Domestic B2B reverse-charge sales: Domestic B2B sales to a company registered in France, where the reporting obligation lies with the French client.
• Domestic sales to other foreign companies: The non-registered supplier in France is obliged to report.
• Domestic B2C sales: The non-registered supplier in France is obliged to report.

Summary

The introduction of mandatory e-invoicing in France, although postponed to September 2026, is an inevitable step towards the digitization and modernization of the economy. Companies should use this time to prepare their processes and resources for the new requirements. E-invoicing offers numerous benefits, such as cost reduction, better invoice management, and reduced risk of tax fraud. With proper preparation, the transition to e-invoicing can be smooth and beneficial for all involved parties.