Electronic invoicing in France: an obligation for businesses from 2024
The invoicing reform in France establishes the obligation to issue electronic invoicing from 2024 . This reform, much more than a simple transition from paper to electronic format, leads to a profound change in data management and corporate accounting reporting. From July 2024, all companies in France must be able to receive electronic invoices. Between 2024 and 2026, they will also be required to issue their own invoices in this format. Therefore, companies must now plan to set up a system adapted to this new invoice management.
What is electronic invoicing?
To understand this reform and its implications for your business, it is essential to understand what electronic invoicing is.
Electronic invoice: definition and challenges
The electronic invoice, or e-invoicing, is a standardized document, which attests to a commercial transaction between a supplier and its customer . It differs from the electronic invoice, which can simply be a PDF or Excel file, by its specific format and the security of the data it contains.
Like any invoice, it must include certain mandatory information , but it also has particularities specific to the electronic format. It is therefore crucial for companies to master the specificities of issuing electronic invoices to comply with the upcoming reform.
Electronic invoice vs. dematerialized invoice
It is important to distinguish the electronic invoice from the dematerialized invoice.
If dematerialization consists of transforming paper invoices into digital format, electronic invoicing imposes a specific format and structuring of data.
The content of an electronic invoice
The e-invoice contains the same information as the paper invoice, with mandatory information specific to each type of transaction: supplier details, customer details, description of the goods or services provided, amount to pay, VAT rate, etc.
However, it also includes a timestamp and an electronic signature to guarantee its authenticity and integrity.
The electronic format therefore allows for more efficient and faster management of invoices.
What are the benefits of electronic invoicing?
The transition to electronic invoicing is not only a regulatory obligation, it also brings a multitude of benefits. In addition to optimizing the invoicing process , it offers opportunities for productivity gains, increased traceability and improved compliance. Let's dissect these advantages, starting with the government's ambitions through this reform.
The government's objectives
The government is pursuing several objectives with the introduction of electronic invoicing: facilitating VAT declarations, developing the competitiveness of businesses, strengthening the fight against tax fraud and improving the reporting of financial data.
Benefits of electronic invoicing for businesses
For businesses, electronic invoicing offers many benefits , such as: more efficient invoice management, time and money savings, better traceability of transactions and automated reporting for the tax administration.
How to prepare for electronic invoicing?
To anticipate billing reform, it is crucial to understand the implementation timeline and identify the solutions available to your business.
Timetable for implementing electronic invoicing
The introduction of the obligation to issue electronic invoicing will follow a progressive schedule detailed in the order of September 15, 2021. The process will begin on July 1, 2024 where all companies must be able to receive electronic invoices.
The issuance of electronic invoices will then be rolled out gradually : large companies will start from July 1, 2024, followed by mid-sized companies from January 1, 2025 and finally small and medium-sized companies as well as micro-enterprises. from January 1, 2026.
E-reporting obligations will follow the same timetable. Note that a pilot phase will be set up from January 2024 to June 2024 to test the system in real conditions. This gradual progression was confirmed by the Ministry of the Economy in a press release of August 17, 2022, in line with article 26 of the amending finance law for 2022.
Electronic invoice transmission platforms
To meet the obligation to issue electronic invoices, companies can rely on dedicated platforms , such as the Public Invoicing Portal (PPF), or Partner Dematerialization Platforms (PDP) accredited by the tax administration. .
Prepare now for electronic invoicing
Electronic invoicing represents a major change for all businesses. It is therefore crucial to understand how it works and its challenges so as not to be caught off guard.
Start preparing for this change now, find out about the electronic invoicing solutions available and adapt your management system to this new format.
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