Digitalisation in the field of tax management and compliance is an unstoppable and global trend. However, it is also a process that requires a period of adaptation and implementation, as France clearly shows. At the end of 2020, France made electronic receipts mandatory by 2023, but has recently moved this date to 2024 in order to give companies time to implement the necessary system changes.
Through Ordonnance n° 2021-1190, the French Government published details of new requirements on companies to transmit electronic invoicing and e-reporting. The reforms transform the invoicing process for French taxpayers, and all companies will be required to receive electronic invoices from 1 July 2024.
The requirement to issue electronic invoices will enter into force:
- From 1 July 2024 for large companies (classified GE: +5,000 employees and revenue of +€1.5 billion euros or €2 billion in assets),
- From 1 January 2025 for intermediate-sized companies (classified ETI), and
- From 1 January 2026 for small and very small companies (those firms classified as TPE&PME: 250 employees and less than €50 million euros of revenue or 43 million in assets).
B2B e-invoicing will be submitted via Chorus Pro (the system currently used to send invoices to the French government), which can be accessed directly or through service providers. E-invoices will need to include all existing mandatory information required by commercial and tax legislation, as well as the operation type and VAT payment option. This information will provide the Tax Authority with data from every B2B transaction in France. With this solution, the French government establishes a “Y” invoice scheme. More information on the specification could be found in this document published by the French Government.
The Tax Authority will also require specific transactional information on B2C and cross-border invoicing, as well as specific payment data. Though formats have not yet been defined, the required level of data will be software-driven (i.e. small companies with no accounting software have a lesser requirement to a corporation with ERP or billing software).
If you have any questions on how these new requirements will affect your operations, the Auxadi team is at your disposal. And to find out more about digital transformation and tax, check out our special report.