E-Invoicing in France: Then & Now

by | Dec 9, 2024 | E-invoicing

Update of December 9th, 2024

In light of the upcoming e-invoicing reform, we’d like to give you an overview of the French e-invoicing system. Read this blog to find out why e-invoicing has become a hot topic in France, and how it will help fight tax fraud and streamline transaction processes.

New Calendar of the Law

The vote on the reform has been punctuated by numerous postponements, and we’ll be updating this blog regularly to keep you informed of the latest developments.

E-invoicing reform is not a new topic in France, where e-invoicing between businesses and governments (B2G) will be mandatory by 2020. Now, the French government has called for a standardized e-invoicing system for all transactions (B2B, B2C), both sales and purchases.

On July 28, 2023, the French government issued a press release announcing a further delay in the implementation of e-invoicing, without giving further details. It was only later that the new timetable was unveiled with the amendment of October 17, 2023, with the key dates of September 2026 and September 2027 for a staggered rollout to businesses according to their size. This timetable was approved with the new Finance Law in December 2023 and will not change.

A final thunderclap in the fall of 2024 with the announcement of the withdrawal of the PPF implies a reorganization of the Y-scheme as well as the role of the PDPs, but does not go back to the staggered timetable voted in 2023. Finally, on 18 November 2024, the DGFiP in France has published the latest version of guidelines and FAQ for the PDP B2B e-invoicing and B2C e-reporting.

We’ll take a closer look at the points of the reform below.

What are the next steps?

  • 2025: Delivery of directory and launch of pilot for in-depth testing
  • September 1st, 2026: Issuing of e-invoices for large companies – Reception of e-invoices mandatory for everyone
  • September 1st, 2027: Issuing of e-invoices for SMBs and small companies in September

Wondering where your business fits in?

– SMEs are defined as a workforce of fewer than 5,000 people and annual sales of less than €1.5 billion or a balance sheet of less than €2 billion.

– Small businesses are defined as a workforce of fewer than 250 people and annual sales of less than €50 million or a balance sheet of less than €43 million.

The deadlines are rapidly approaching, and it’s never too early to start to prepare, even if your company falls into the small business category. It’s important to note that the e-reporting requirements will follow the same timeline.

We’re continuing to take part in the various discussions to help you make the transition to electronic invoicing, stay tuned for the latest news on e-invoicing in France and get ready for 2026!

Introduction

Among postponements and deliberations, this long-term work initiated by the government involves many actors, including service providers like SPS Commerce. Interoperability across different e-invoicing platforms has been a high-priority focus of the group.  A Peppol authority, taken over by the French government, is currently being set up to facilitate this exchange.

With this new initiative, the government is aiming to combat VAT fraud and make transaction processes more efficient.

Context

The European Union and the European Commission want to simplify and facilitate business-to-business (B2B) relations. The extension of the electronic invoicing requirements for domestic transactions between VAT taxpayer companies, as well as non-domestic B2B transactions, have given rise to e-invoicing. In 2022, there will be 4 million French businesses subject to VAT, 96% of which will be small businesses.

There are 4 main objectives:

  • Limited VAT fraud
  • Limited constraints between companies (thanks to real-time transactions between suppliers and customers)
  • Transparency to government authorities
  • Use of new technologies

What to expect

Businesses will have to send electronic invoices for their business-to-business transactions – this is known as “e-invoicing”. The second part, known as “e-reporting”, concerns invoicing data that do not fall within the scope of e-invoicing, but which remain transactions subject to VAT.

To be compliant, companies will have to go through an approved third-party commercial partner platform, or “Plateforme de Dematerialization Partenaire” (PDP). Indeed, in October 2024, the government decided to withdraw its platform (the Portail Public de Facturation), giving greater weight to PDPs.

PDP

A PDP is an intermediary between a supplier and a customer. PDPs are the only platforms that can transmit electronic invoices directly to their recipients AND transmit the data to the Public Billing Portal. They must ensure that data integrity, authenticity and completeness are maintained. PDPs will be registered by the administration and will also play an internal role, such as managing a directory. And yes, SPS Commerce supports both B2G and B2B e-invoicing requirements in France, we are registered under number 0010.

E-Invoicing Formats

All French e-invoicing providers will need to ensure that UBL, CII, and Factur-X (the three main French e-invoice formats) are supported. Additionally, PDF invoices can be created, but cannot be scans – if you’re at all familiar with e-invoicing, this is nothing new.

Next steps

If you are a company that is subject to VAT in France, these laws concern you. However, you have nothing to worry about if you choose to use a service provider that meets all compliancy requirements (like SPS Commerce). And, if you choose to become a customer of SPS Commerce, you can take comfort in knowing that not only are you meeting all regulations, but you can also easily digitalize all your business processes.

Questions? Feel free to reach out. We’re more than happy to help!

 

Faustine Tournay
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