The French tax authority, Direction Générale des Finances Publiques (DGFiP), has put forward a proposal to amend the Finance Bill of 2024. This proposal suggests that the French e-invoicing and e-reporting mandate will come into effect on 1 September 2026. Previously, there were indications that the mandate would be delayed until 2026, but now it seems that the timeline has been finalized.
According to the proposed timeline, the construction of the PPF (Public Procurement Platform) will be completed in 2024. Following this, there will be a pilot phase in 2025 to test the system’s functionality and identify any potential issues. Finally, from 1 September 2026, large and medium-sized companies will be required to comply with the e-invoicing and e-reporting mandate. Small enterprises will have an additional year, with their compliance deadline set for 1 September 2027.
It is important to note that this proposal is still subject to the adoption of the Finance Bill, which is expected to take place in the fourth quarter of this year. Once the bill is adopted, it will become law, and companies will need to prepare themselves for the upcoming changes.
The introduction of mandatory e-invoicing and e-reporting aims to streamline and modernize the tax reporting process in France. By digitizing these processes, the French tax authority hopes to reduce errors, improve efficiency, and enhance transparency.
E-invoicing and e-reporting involve the electronic submission of invoices and relevant tax information directly to the tax authority. This eliminates the need for manual data entry and reduces the risk of errors. It also allows for real-time monitoring and analysis of tax data, enabling the tax authority to identify potential non-compliance more quickly and accurately.
The move towards e-invoicing and e-reporting is part of a global trend towards digital tax administration. Many countries around the world have already implemented similar systems, including Italy, Spain, and Hungary. These systems have proven to be effective in improving tax compliance and reducing the tax gap.
For businesses, the transition to e-invoicing and e-reporting may require some adjustments to their existing systems and processes. They will need to ensure that their invoicing and reporting systems are compatible with the requirements set out by the French tax authority. This may involve updating their software, training their staff, and implementing new procedures.
However, the benefits of e-invoicing and e-reporting are significant. By automating these processes, businesses can reduce administrative costs, improve cash flow management, and enhance their overall efficiency. They can also minimize the risk of errors and penalties associated with non-compliance.
To facilitate this transition, there are several service providers, such as Pagero, that offer e-invoicing and e-reporting solutions. These providers can help businesses navigate the complexities of the new mandate and ensure compliance with the French tax authority’s requirements.
In conclusion, the French tax authority has proposed an amendment to the Finance Bill of 2024, suggesting that the e-invoicing and e-reporting mandate will come into effect on 1 September 2026. This proposal is part of a broader effort to modernize tax administration and improve compliance in France. Businesses will need to prepare themselves for the upcoming changes and ensure that their systems and processes are in line with the requirements set out by the tax authority. With the right support and guidance, they can successfully transition to e-invoicing and e-reporting and reap the benefits of a more efficient and streamlined tax reporting process.
