Invoicing and Tax regulation in France
Navigating French evolving e-invoicing and tax regulations can be challenging. This guide provides an overview of the latest requirements to help you stay compliant and avoid potential penalties.
In the guide, we will cover:
Regulations Timeline
A quick overview of all current and upcoming regulations that France mandates regarding e-invoicing and digital reporting. For more details, check out the sections below.
Regulations in Effect:
Upcoming Changes to French E-invoicing:
French E-invoicing Requirements (2024 Updated)
In France, current regulations mandate e-invoicing for all B2G transactions. While B2B and B2C e-invoicing is voluntary for now, B2B companies will be mandated to issue e-invoices, starting in January 2027 with large and medium-sized companies and fully extending in September 2027 to all company sized.
You will also have a chance to participate in a pilot phase scheduled for 2024/2025, providing you an opportunity to test your e-invoicing system, ensuring compliance with both internal operations and French e-invoicing standards, prior to the mandatory rollout.
To support this transition, France has implemented:
Governmental Body Responsible for E-invoicing
The Agence pour l’Informatique Financière de l’État (AIFE) is responsible for e-invoicing regulations in France.
Click here to visit their official website.
E-invoicing Formats
In France, e-invoices are typically exchanged using the XML format, usually in either UBL or PEPPOL BIS Billing 3.0. Businesses connect to Chorus Pro; facilitating the exchange of electronic invoices between B2B and supports the French government’s commitment to streamlined digital invoicing.
E-invoice Requirements
Invoices must be issued at the time of the supply and for taxable customers, they have to be issued by the 15th of the month following the supply. They can be issued in either electronic or paper form and must include the following components:
Certain transactions may require additional information:
E-invoice Archiving
E-invoices must be archived for a minimum of ten years.
Tax Regulations
Value Added Tax (VAT)
In France, the standard VAT rate is 20% and applies to most goods and services.
However, France also enforces reduced VAT rates:
Corporate Tax
The standard corporate tax rate in France is 25%. For companies with a turnover of less than €10 million that were also subject to the standard corporate tax rate in the previous fiscal year, there is a reduced tax rate of 15% on the first €42,500 of taxable income.
VAT on Digital Services in France
Digital services in France are generally subject to an 25% VAT. However, foreign companies selling digital services to French consumers have some extra regulations:
Digital services that are subject to VAT include e-books, software downloads, music, movies, games, and other electronically supplied services.
Digital Reporting
Ukraine has already introduced several digital reporting requirements, with more to come:
VAT Registration and Thresholds
VAT Returns and Payments
The reporting frequencies are as follows:
Penalties
Achieving Global Invoicing and Tax Compliance with Space Invoices
One way to comply with (e-)invoicing, tax, and reporting regulations in France is to use a provider like Space Invoices.
You will be able to:
Do you have questions about achieving compliance in France?
We are ready to help.
The information in this guide is strictly informative, as regulations and timelines change frequently. While we make every effort to monitor updates and maintain the accuracy of our content, we recommend consulting with a tax professional or e-invoicing specialist for the most reliable and personalized advice. This guide was last updated on November 17, 202
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