Electronic invoices in France will be mandatory in 2023
All companies will be obligated to use e-invoicing in France in 2023. This was set in place to reduce VAT fraud and to make invoice management easier for businesses.
Electronic invoices in France will be obligatory in 2023
France, like other countries such as Italy and Portugal, is updating their invoicing processes by making them digital. The current plan is to make accepting electronic invoices required for all businesses in 2023, and by 2025 obligatory for inter-company payments and B2B transactions.
How will the electronic invoices in France be applied?
The obligation will be implemented in a gradual manner between 2023 and 2025, based on the size of the company and the business activity carried out. From 2023 on, all companies must update their own invoicing processes to accept electronic invoices. During this time, large companies will also be required to submit electronic invoices, as stated by the Directorate of Public Finances (DFGiP).
A projected timeline was created for making issuing electronic invoices required based on company size. These invoices would have to pass through the Chorus Pro platform to be submitted to the DFGiP).
Size of companyTarget year
The report stated that there would be some exceptions to the transactions reported with electronic invoicing, as there aren’t harmonized rules within the European Union and there aren’t any obligations to issue e-invoices when carrying out B2C transactions.
What will improve with the issuance of electronic invoices in France?
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
Concerned about how the upcoming changes regarding electronic invoices in France might affect your day-to-day business operations? Contact us today to find out more and about how our services can aid you.