The government is undertaking an ambitious reform to introduce electronic invoicing in France. The goal is to streamline data submission to the Tax Agency, lower company costs, expedite collections periods, and enhance measures to prevent fraud and tax evasion. As part of this initiative, businesses will need to utilise a singular platform for both receiving vendor invoices and sending invoices to customers. This platform will automatically transmit all transaction details to the Tax Agency.
The French Tax Agency, in accordance with various stakeholders, has decided to postpone the implementation of the electronic invoicing obligations initially planned for July 1st, 2024, in order to ensure a smooth and guaranteed transition to the new system.
French Tax Agency, after discussions with the stakeholders, decided to postpone the entry into force of the electronic invoicing obligations initially planned for July 1st, 2024, in order to make sure that the transition to the new environment can be done with a view to providing all the requisite guarantees.
In October 2023, the new effective dates forthe reform have been determined as follows:
- September 1st, 2026: All companies must be in position of receiving electronic invoices through the new established means, while the issuance of electronic invoices will be mandatory for large and medium-sized companies.
- September 1st, 2027: Obligation of issuing electronic invoices is extended to SMEs and micro-companies.
However, the French Tax Agency retains the option to extend these deadlines for an additional three months.
This reform also seeks to simplify companies’ adherence to tax compliance requirements by automatically populating VAT returns with data collected by the French Tax Agency through e-invoicing platforms.