France E-Invoicing: What is and How to submit it?
E-invoicing and e-reporting obligation in France will be rolled out in phases starting from July 2024.
Mandatory B2B e-invoices in France
Electronic VAT invoices for B2B transactions and e-reporting of all supplies not falling in the e-invoicing obligation will be progressively introduced in France, following a three-years calendar plan.
Electronic invoices are already mandatory since January 2020 in France concerning transactions with public administration (B2G).
What is e-invoicing in France?
E-invoicing means issuing, sending, and receiving your invoices electronically. In France, mandatory e-invoices require all businesses to issue these invoices in a pre-defined format following specific transmission standards. All relevant data in e-invoices issued in France will be communicated to the tax authorities in real time.
The obligation to issue e-invoices on a B2B context is expanding across Europe. Italy already introduced mandatory e-invoices, Greece also requires e-invoicing and Spain announced plans to implement e-invoicing.
When will e-invoices in France become mandatory?
The obligation will be rolled out during 2023 and 2025, based on the size of the company and the business activity carried out.
- 1 July 2024: Required by large taxpayers (or “grandes entreprises”); all companies whose size does not fall in the other categories.
- 1 January 2025: Companies of intermediary size; these are businesses with less than 5,000 employees and whose annual turnover does not exceed EUR 1.5 billion.
- 1 January 2026: small and medium-sized companies with less than 250 employees and an annual turnover of less than EUR 50,000,000.
It is important to note that, despite the progressive implementation calendar, all companies must be able to receive electronic invoices by 1 July 2024.
Benefits of electronic invoicing for companies
Various benefits are expected to be seen by implementing e-invoicing, including but not limited to the following:
- Reduced administrative burden on invoice management.
- Lower invoicing costs.
- More precise monitoring of invoices.
- Reduced risk of VAT fraud.
- Easy preparation of VAT returns due to pre-filling.
In average, businesses pay a cost of 12€ for each paper invoice processed. E-invoices cost 3€ per invoice, hence improving productivity and reducing administrative burdens.
Chorus Pro - Public Billing Platform PPF
The Chorus Pro platform is the electronic platform currently available for uploading e-invoices issued in transactions made with the French public administration (B2G). You can access the portal here.
We expect that B2B e-invoices in France will need to use a similar platform to submit their B2B invoices to the French tax authorities.
How to submit French e-invoices
Electronic invoices will be sent to the business client via a dematerialization platform, whether the public portal or another private electronic platform. Currently, e-invoicing in France concerning transactions with the public administration (B2G) via the Chorus Pro platform.
In their role as an intermediary between the supplier and client, these platforms will have the ability to transform the form of the invoice issued by the supplier into a format suitable for the client.
Invoices received from your suppliers will be sent to you electronically through the selected platform. This platform can be the same as your provider, a different platform, or the public portal because these platforms must be compatible for the exchange.
Which Companies will be Affected?
Companies established in France and involved in domestic sales and purchases transactions.
E-invoicing will be mandatory for all domestic transactions (sales and purchases and supplies of services) between companies established in France and VAT taxpayers. Non-taxable transactions for VAT purposes are not under mandatory e-invoicing or e-reporting implementation. You can find here the official information published by the French tax authorities.
E-invoicing will apply to B2B taxable transactions made between established companies in France.
How can Marosa help?
VATify incorporates an e-invoicing module allowing you to issue and receive invoices in all Europe using a single standard file. Marosa is authorized to issue e-invoices in all countries where it is mandatory on B2B transactions.
Contact our team to see a demo of how VATify can be your single platform for all European
What is E-reporting in France?
E-reporting is the obligation to declare those sales not falling within the scope of French e-invoicing. This is for exports, imports, sales to private individuals (B2C), intra-Community supplies and acquisitions.
The implementation calendar is the same as for the B2B e-invoicing obligation. You can refer to the previous section.
In general, transactions are listed in Article 290 of French VAT Law. This includes sales and supplies of services transactions made with French private customers, e.g., domestic retail sales or customers established abroad – both private customers or companies, e.g., intra-Community supplies and exports.
Also, foreign businesses will have to comply with the e-reporting obligation when they perform the taxable transactions from the above list in France.
Foreign businesses might be subject to e-reporting obligations when they perform taxable transactions with the place of supply in France, like domestic supplies to private customers or intra-Community supplies.
Are foreign businesses affected by e-reporting in France?
Foreign businesses are subject to e-reporting obligations when they perform taxable transactions in France, for which they must charge French VAT. You will find below a list of common scenarios on transactions made by foreign companies registered for VAT in France:
- Domestic sales B2B reverse-charge: these correspond to domestic sales B2B made to a company established in France. In this case, the client based in France is subject to the e-reporting obligation and not the foreign company.
- Domestic sales made to other foreign companies: in this case, the supplier non-established in France is subject to the e-reporting obligation.
- Domestic sales B2C: in this case, the supplier non-established in France is subject to the e-reporting obligation.
More information about French electronic invoices
Ordinance No. 2021-1190 of September 15, 2021 on the generalization of electronic invoicing in transactions between taxable persons for value added tax and the transmission of transaction data, sets the grounds for general implementation of the electronic invoicing in France (Ordonnance n° 2021-1190 du 15 septembre 2021 relative à la généralisation de la facturation électronique dans les transactions entre assujettis à la taxe sur la valeur ajoutée et à la transmission des données de transaction).
The ordinance also clarifies the definition of an electronic invoice, clarifying it refers to an invoice issued, transmitted, and received in a dematerialized form and which necessarily includes a minimum base of data in a structured format, differentiating it from "paper" invoices or ordinary PDF.
The French tax authorities publish a FAQ article about this new obligation, updated when necessary. Also, the technique specifications for B2B electronic invoices and e-reporting are published on the authority’s website – you can review them here.