Stay Ahead of the Curve - France's New E-Invoicing and E-Reporting Mandate

The latest entrant in this realm is France, with a mandate from the French Tax Authority (FTA) that's about to transform the business landscape in the country.

As we strive to create a paperless world and streamline processes, digitization has been rapidly adopted in all business sectors. One area where this shift is becoming increasingly crucial is invoicing. The latest entrant in this realm is France, with a mandate from the French Tax Authority (FTA) that's about to transform the business landscape in the country. In an effort to make invoice management more efficient and reduce VAT fraud, a new e-invoicing and e-reporting requirement is being rolled out.


What's the update?

Starting from July 1, 2024, all businesses operating in France must comply with mandatory e-invoicing and e-reporting. The French Tax Authority has issued Technical Guidance outlining the specifics to help businesses adapt to these changes. The implementation timeline for the requirement will be staggered according to the size of the company:


  • Large companies - Compliance required by July 1, 2024
  • Small and medium-sized enterprises (SMEs) - Compliance required by January 1, 2025. This category includes companies with a workforce of fewer than 5,000 people, and either annual sales of less than €1.5 billion or a balance sheet total of less than €2 billion.
  • Very small enterprises (VSEs) and remaining SMEs - Compliance required by January 1, 2026. This category includes enterprises with fewer than 250 employees, and either annual sales of less than €50 million or a balance sheet total of less than €43 million.
  • The new requirements aim to bring more transparency and efficiency in dealing with VAT and other financial transactions.


    Understanding E-Invoicing and E-Reporting

    Under the new mandate, e-invoicing will need to be accompanied by e-reporting. Companies will be required to submit additional information to the authorities, which include:

  • Data concerning business-to-business (B2B) transactions for non-French customers
  • Data concerning business-to-customer (B2C) transactions for taxable transactions in France
  • Data concerning purchases from foreign operators (excluding imports)
  • The payment status of invoices for services (for services declared on e-invoices as e-reporting)
  • Businesses must submit this data to the Tax authorities within four days after the end of the week (for companies subject to the standard reporting scheme) or within seven days after the end of the month (for all other companies).


    Consequences of Non-Compliance

    Non-compliance with the new mandate will result in penalties:

  • For non-compliance with e-invoicing, businesses will be fined €15 per invoice, with a maximum penalty of €15,000 per year.
  • For non-compliance with e-reporting, the penalty is €250 per transmission, capped at €45,000 per year.
  • With these potential penalties in place, it is essential that businesses adopt a robust e-invoicing software and compliance solution to meet the requirements set forth by the French Tax Authority.


    Moving Forward

    Given the breadth and scale of these changes, it's critical for businesses to start preparing early. The rollout may seem distant, but it's essential to remember that implementing a new invoicing system can be complex and time-consuming.

    For businesses operating in France, now is the time to begin familiarizing yourself with the new rules and working to update your processes accordingly. Implementing the right e-invoicing software can help streamline this transition and ensure you remain compliant in a changing regulatory environment.

    Stay tuned to our blog for more insights and updates on e-invoicing and other regulations. Our aim is to help businesses navigate this digital landscape, making the complex simple and the taxing manageable.



    Navigating these regulatory changes may seem challenging, but with Space Invoices, it doesn't have to be. Our advanced invoicing API is designed to meet these new requirements, ensuring your business is not just compliant, but also future-proof.

    With Space Invoices, transitioning into the era of e-invoicing is seamless and efficient. Embrace the future of invoicing with us - let's simplify the complex together. Reach out today to learn how Space Invoices can be your solution for tomorrow's invoicing needs.


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