Since 1^er in january 2021, companies are required to submit their invoices to the public sector electronically. To do this, they use the portal Chorus Pro. This issue of electronic invoices will concern all transactions between companies subject to VAT, established in France.

Deferral of the obligation to issue and receive electronic invoices

In order to guarantee the best possible conditions for the transition to e-invoicing of companies, the 2024 budget has set a new timetable for the implementation of this reform.

L'obligation to issue electronic invoices will be issued:

• the 1^er september 2026 for large companies and mid-cap companies;
• the 1^er september 2027 for small and medium-sized companies (SMEs) and micro-companies.

L'obligation to receive electronic invoices will apply for all companies from 1^er september 2026.

The dates laid down in this timetable may be extended, if necessary, by a maximum of six months.

Scope of e-invoicing

As indicated above, electronic invoicing concerns all transactions between companies established in France and liable to VAT. The following are therefore subject to electronic invoicing:

• the supply of goods or services in France by a taxable person to another taxable person which is not exempt from VAT;
• the advance payments relating to those operations;
• the public auction of second-hand goods, works of art, collectors' items and antiques.

New mandatory particulars

In addition, new entries will have to be added on invoices issued to the 1^er september 2026 for large companies and mid-market companies (MID-cap) and 1^er september 2027 for small and medium sized companies (SMEs) and micro companies:

• the SIREN number;
• the address of delivery of the goods, where different from the address of the customer;
• information that the transactions on which an invoice is issued consist exclusively of supplies of goods or services or consist of both categories of transactions;
• the payment of VAT on a debit basis, where the supplier has opted for it.

Securing and preserving electronic invoices

The 2023 budget allows for the use of qualified electronic seals to secure electronic invoices. This stamp is used by legal persons to guarantee the authenticity of the origin, the integrity of the content and the legibility of the invoice. It is used to certify that the creator of the stamp is indeed the originator of the document.

It has also been stated that documents (including invoices) drawn up or received in electronic form must be kept in this form for a period of 6 years. This period shall run from the date on which the invoice was drawn up.

A transition to prepare for company

In order to be ready when this major change takes place, companies must identify the players involved in this reform and take stock of the situation in order to know what changes are to be made. The company will also have to adapt its invoice processing and therefore choose an electronic invoice receiving platform. These changes should be incorporated into the company's billing and accounting organization.

To this end, the Electronic Invoicing Mission of the General Directorate of Public Finance (DGFIP) has published explanatory notes for SMEs and micro-companies.

Specific objectives

The objectives of this important change are multiple for tax administration:

1. combat VAT fraud more effectively;
2. improving the competitiveness of companies through dematerialization. This allows for a reduction in payment delays and thus a reduction in the administrative burden;
3. simplifying, in the long term, VAT reporting obligations through the pre-filling of declarations;
4. Improve real-time knowledge of company activity.

Application in the Overseas Communities (COM) and Overseas Departments (DOM)

Operators established in COM (French Guiana, Mayotte, Saint-Pierre and Miquelon, Saint-Barthélemy, New Caledonia, French Polynesia, Wallis and Futuna) and the French Southern and Antarctic Lands are not not concerned by electronic invoicing, VAT not being applicable to it. However, the transactions of the taxable person established in mainland France fall within the scope of e-reporting (transmission of transaction data to the tax authorities).

Operators established in DOM (Guadeloupe, Martinique and Reunion) are, concerned by electronic invoicing and e-reporting, VAT being applicable in these departments. However, e-invoicing does not apply for Guyana and Mayotte.