France | E-invoicing
October 16, 2024
France Issues Update on B2B Electronic Invoicing
PDPs will serve as the exclusive means for exchanging invoices
| Image Credits: The Ministry for the Economy and Finance at Bercy, officially called the Centre des Finances Publiques, by Moktarama.
The French government is advancing its efforts to promote the widespread adoption of electronic invoicing among companies. This move is part of a broader push towards the digitalization of commercial exchanges, which is expected to provide numerous benefits for businesses, including enhanced competitiveness through improved payment terms and streamlined invoicing processes. Furthermore, the initiative is aimed at simplifying the interactions between businesses and French tax authorities, leading to a more efficient and transparent system.
GRADUAL DEPLOYMENT OF ELECTRONIC INVOICING IN FRANCE
The deployment of mandatory electronic invoicing will be phased in, as outlined in Article 91 of the Finance Act for 2024 (No. 2023-1322, December 29, 2023):
September 1, 2026: All companies in France must be able to receive electronic invoices, while large and intermediate-sized companies will be required to issue them.
September 1, 2027: Small and medium-sized enterprises (SMEs) and micro-enterprises will also be required to issue electronic invoices.
This staggered implementation allows companies sufficient time to adapt to the new requirements, ensuring a smooth transition towards full digital invoicing across France.
PARTNER DEMATERIALIZATION PLATFORMS (PDPS)
As part of the reform, over 70 partner dematerialization platforms (PDPs) have been provisionally registered by the Directorate General of Public Finances (DGFiP) under the decree of March 25, 2024. This registration highlights the active engagement and readiness of the French ecosystem and service providers to support this reform. These platforms will be essential in helping businesses make the switch to electronic invoicing.
Since September 16, 2024, French companies can consult the regularly updated list of registered PDPs on the official tax portal, impots.gouv.fr. This ensures that businesses are aware of the available platforms, which will continue to grow as new operators join.
ENSURING PLATFORM QUALITY AND SECURITY
The French government is committed to ensuring that the registered PDPs provide secure, high-quality services that meet the evolving needs of companies. The reform will focus on developing a recipient directory to facilitate seamless exchanges between platforms and creating a data concentrator for transmitting invoice information to French tax authorities.
These developments aim to ensure that the deadlines set in the Finance Act for 2024 are met and that the necessary resources and structures are in place to support the transition.
ONGOING CONSULTATION AND SUPPORT
The French government is dedicated to supporting businesses throughout this transition, maintaining continuous consultation with key stakeholders, including PDPs, professional associations, dematerialization operators, and software providers. This collaborative approach will ensure the successful integration of electronic invoicing across all sectors of the French economy.
The government reaffirms its commitment to the generalization of electronic invoicing as part of a broader strategy to modernize business transactions, enhance tax compliance, and strengthen the competitiveness of French companies.
SHORT-TERM MEASURES FOR INVOICE EXCHANGE
In the short term, PDPs will serve as the exclusive means for exchanging invoices between taxpayers to prevent any disruption to the e-invoicing roll out timeline. The DGFiP, along with the Agency for State Financial Information (AIFE), will now concentrate on developing the directory (Annuaire) and a central data concentrator to ensure efficient transmission of invoice information to the relevant authorities. This focus will help maintain the timeline of the reform while offering companies the resources they need to comply.
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