eInvoicing in France
Article 153 of the French Financial Code, introduced the requirements for eInvoice for transactions between taxpayers, as well as the obligation to transmit eReporting to the tax authorities. The purpose of this is to facilitate the work of the taxpayer and the state by providing the creation of value-added tax (VAT) returns.
In this context, the government adopted a decree in September 2021 that popularizes the use of eInvoices and introduces a new obligation to transmit certain additional data. Tax authorities have published technical guidance containing specifications for this requirement, allowing businesses to prepare for the new requirements.
eInvoice in France
In 1998 the practice of eInvoice was made more visible, and in 2001 the PDF format was introduced by the EU directive. After these phases, France added obligatory e-Invoicing measures to its 2020 budget to combat VAT fraud.
France has been taking some legal measures since 2012 to publicize e-Invoicing. With the Business Modernization Act, the government began receiving electronic invoices for some of its services. The Chorus Pro portal for suppliers was developed for this purpose. The obligation to issue eInvoices for large companies with more than 5000 employees began in 2017 with the B2G approach. From January 1, 2020, the scope of the obligation has expanded to include companies with fewer than ten employees.
As the obligation to issue eInvoice increased, the Chorus Pro solution, which is mandatory for companies, was introduced. And public institutions started receiving e-invoices from their suppliers through the Chorus Pro platform. France, which aims to switch from the B2G to the B2B approach in 2023, will require eReporting alongside eInvoices. This commitment will begin in 2023 for large companies, in 2024 for medium-sized companies, and in 2025 for small companies.
Who is subject to e-reporting?
All companies subject to VAT that is established in France are concerned by e-reporting when they carry out transactions with individual customers (“business to consumer” transactions, B2C,) or with foreign operators (companies or individuals). Certain foreign companies not established in France may be subject to the e-reporting obligation, as soon as the transaction they carry out is carried out with a person not subject to VAT (usually an individual, but this perhaps an association or a public person) and is taxable in France.
E-reporting data must be transmitted to the tax authorities four days after the weekend for companies subject to the standard reporting system and seven days after the last day of each month for all other companies.
Penalties to be applied in case of non-compliance with the Regulation are given below:
- Non-compliance with e-invoice — a penalty of €15 per invoice capped at €15,000 per year
- Non-compliance with e-reporting — penalties of €250 per submission, cap of €45,000 per year
Invoice format
From 1 July 2024, only certain formats will be accepted for B2B and B2G transactions. These are: UBL, C2I, Invoice X. A readable PDF must be attached to these formats. In this case, new information will also need to appear on the invoices to be prepared:
- SIREN number of taxable customers located in France
- Determining whether the transaction is for a good, a service or a mixed service
- Debit option
- The exact address of delivery or service execution
Finally, when e-invoicing and e-reporting mechanisms are implemented, this obligation regarding the authenticity of invoices, integrity of content and readability remains unchanged.
Melasoft Facture Solution
Melasoft is a global and dynamic company that offers compliance solutions to customers in different regions. We offer localized compliance solutions to its customers from various countries, such as XRechnung and ZUGFeRD solutions in Germany and Virtual Warehouse and IS ESF systems suitable solutions in Kazakhstan. We also support French taxpayers with Melasoft e-Invoice and e-Reporting Solution, which completely integrates with the Chorus Pro portal.
