France is set to introduce new requirements for e-invoicing and e-reporting, with the aim of streamlining business processes and improving tax compliance. The current mandate in place requires businesses to submit invoices to the Chorus Pro platform for Business-to-Government (B2G) e-invoicing. However, from 2024, Business-to-Business (B2B) e-invoicing and e-reporting will also become mandatory in phases.
Under the new regulations, large taxpayers will be required to issue e-invoices and report other transactions from July 1, 2024. By January 1, 2026, all taxpayers will be covered by the mandate. This includes taxpayers established in France, including French branches of foreign businesses, as well as taxpayers not established in France but carrying out transactions subject to French VAT.
The governing entity responsible for implementing these changes is the French Tax Authority, also known as the Direction Générale des Finances Publiques (DGFIP). To facilitate e-invoicing and e-reporting, businesses will be required to use the Chorus Pro platform, which serves as the designated infrastructure for these processes.
It is important to note that while Peppol connectivity is available for the current mandate, it will not be applicable for the upcoming B2B e-invoicing and e-reporting requirements. Therefore, businesses will need to ensure compliance with the specified formats for sending invoices to the Chorus Pro platform.
The approved formats for e-invoicing include Universal Business Language (UBL), Cross-Industry Invoice (CII), Factur-X, Chorus Pro Payment Protocol (CPP), Electronic Payment Slip (PES), and Peppol Business Interoperability Specifications (BIS 3). However, businesses will still be allowed to use PDF format until 2027.
In addition to e-invoicing and e-reporting, businesses may also have other digital reporting obligations, such as providing on-demand Standard Audit File for Tax (SAF-T) or other accounting filings. These requirements aim to enhance transparency and facilitate tax audits.
When it comes to archiving, businesses have the option to store their invoices abroad, subject to certain conditions. The archiving period is set at 10 years from the end of the fiscal year, ensuring that relevant documents are retained for future reference.
The introduction of mandatory B2B e-invoicing and e-reporting in France is part of a global trend towards digitization and automation of tax processes. By implementing these requirements, the French government aims to reduce administrative burdens, enhance tax compliance, and improve the efficiency of business operations.
Businesses operating in France, both domestic and foreign, should ensure they are prepared for the upcoming changes. This includes understanding the specific requirements of the mandate, adopting the necessary technological solutions, and implementing appropriate processes to ensure compliance.
Overall, the move towards mandatory B2B e-invoicing and e-reporting in France represents a significant step forward in the country’s digital transformation journey. It is expected to have a positive impact on businesses, tax authorities, and the economy as a whole, paving the way for more streamlined and efficient tax processes in the future.
