Navigating France’s Electronic Invoicing Transformation: All You Need to Know

France is undergoing a significant transformation in its invoicing system. The French government has introduced a comprehensive e-invoicing and e-reporting framework for business-to-business (B2B) transactions. This initiative is part of a broader European effort to modernize VAT processes and combat tax evasion.

Scope of Electronic Invoicing

The mandate applies to all B2B transactions within France involving VAT-registered businesses. It includes:

• Goods and services deliveries within France subject to VAT.
• Advance payments related to these transactions.
• Public auctions for second-hand goods, art, antiques, and collectibles.

Exclusions:

• Overseas Communities (COM): E-invoicing is not required in regions like French Guiana and Mayotte where VAT does not apply.
• Overseas Departments (DOM): Regions like Guadeloupe and La Réunion are subject to e-invoicing mandates.

Invoice Format Requirements

Invoices must follow specific formats and include mandatory information:

Structured and Hybrid Formats:

• Structured: UBL Invoice, CII D16B, XCBL, Peppol BIS 3.0.
• Hybrid: FACTUR-X (PDF-A3), CPP Hybrid.

Additional Mandatory Information:

• SIREN Number: Company registration number.
• Delivery Address: If different from the customer’s address.
• Transaction Clarification: Indication of goods, services, or both.
• VAT Payment Method: Applicable for VAT paid based on debits.

Key Roles in French E-invoicing System

What is Chorus Pro?

• Chorus Pro is the French government’s electronic invoicing platform that enables businesses to upload and manage invoices for transactions with public administration entities (B2G).
• It is managed by the The State Financial Information Technology Agency (AIFE).
• Currently serves as the electronic platform for uploading e-invoices in transactions involving the French public administration (B2G transactions).

What is the Public Procurement Framework (PPF)?

• The Public Procurement Framework (PPF) is the evolution of Chorus Pro.
• It expands its functionality to handle B2B e-invoicing and e-reporting in addition to its existing B2G role.
• Instead of serving as a free platform for issuing invoices, it will focus on:
• The PPF will no longer function as a free platform for issuing or receiving e-invoices, as was initially intended.

What are Partner Dematerialization Platforms (PDPs)?

• Certified Platforms (PDPs) are private, government-accredited platforms that handle the electronic exchange of invoices for businesses.
• PDPs are responsible for:
• PDPs ensure that invoices comply with French and EU standards.
• Businesses must use accredited PDPs to send and receive electronic invoices. PDPs are certified by the tax administration to ensure secure transmission of invoices.
• PDPs replace the previously planned free PPF e-invoice option.
• PDPs manage invoice transmission and ensure compliance with structured formats.
• A list of certified PDPs is published by the French government on the General Directorate of Public Finances (DGFiP).
• The workflow from Seller to the PPF via PDP is shown in Figure-1.

Responsible Authorities

The following authorities are responsible for overseeing and implementing the electronic invoicing mandate:

• General Directorate of Public Finances (DGFiP): Responsible for regulatory guidance, certification of PDPs, and ensuring compliance.
• Ministry of Economy and Finance: Oversees policy development and ensures alignment with national fiscal objectives.
• Tax Administration: Enforces penalties and provides support for businesses transitioning to the new system. Refer to DGFiP resources for updates.

Timeline for Mandatory Electronic Invoicing

France is transitioning to mandatory electronic invoicing for businesses. The process will unfold in phases based on company size:

• First Half of 2024 — Partner dematerialization platform (PDP) licensing process completion, Public Invoicing Portal (PPF) completion.
• Whole of 2025 — Pilot program phase:
• Large Companies ( > €50 M ) and ETIs (€10 -€50 million): Must comply by September 1, 2026.
• Small and Medium Enterprises ( SMEs [€2M-€10] ) and Micro-Enterprises: Deadline is extended to September 1, 2027.
• All Companies : Required to receive electronic invoices starting September 1, 2026.

Compliance and Penalty Regime

Non-compliance will result in penalties:

• Taxpayers: €15 per invoice, capped at €15,000 per year.
• Certified PDPs: €15 per invoice, capped at €45,000 per year.

Securing and Storing Electronic Invoices

• Signing Electronic Invoices

While not mandatory, signing electronic invoices is highly recommended to ensure integrity and authenticity. France accepts the Qualified Electronic Signature, requiring a certified digital certificate and a secure signature creation device. Partner Dematerialization Platforms (PDPs) must validate electronic signatures and comply with DGFiP requirements. Businesses can also use reliable audit trails or EDI interchange if they opt not to sign.

• Retention Period

Electronic invoices must be stored in their original digital format for a minimum of six years from the issuance date.

Peppol E-invoicing Use in France

The DGFiP (Direction Générale des Finances Publiques) and the national e-invoicing association in France have provided key updates regarding the 2026 B2B e-invoicing mandate, which will adopt a five-corner PEPPOL model (Figure-2).

French PEPPOL Authority

In collaboration with OpenPeppol, the DGFiP will establish a French PEPPOL Authority to ensure the interoperability of certified PDPs. This authority will also provide clear guidelines to help PDPs develop efficient, compliant solutions for businesses, supporting seamless e-invoicing across the network.

Preparing Your Business for the Transition

To ensure compliance, businesses should:

1. Identify Stakeholders: Understand who in your organization is impacted.
2. Evaluate Changes: Assess current workflows and systems.
3. Choose a Certified PDP: Ensure compatibility with French and EU standards.
4. Update Systems: Adapt invoicing and accounting systems to handle e-invoicing.
5. Stay Informed: Follow updates from the DGFiP and related authorities.

Conclusion

In summary, the mandatory e-invoicing system represents a significant shift in how businesses in France will handle invoicing and reporting, with compliance required across various business sizes and types by 2026. Businesses that adapt early stand to benefit from increased efficiency, reduced administrative burdens, and enhanced compliance. By selecting the right partners and updating workflows, companies can navigate this transition seamlessly.

Melasoft offers a robust and scalable solution to support businesses through this transition. As a trusted SAP Partner and certified PEPPOL Service Provider, Melasoft delivers tailored e-invoicing solutions that integrate seamlessly with existing ERP systems, ensuring full compliance with French and EU standards.

Get ready to comply — partner with Melasoft and simplify your transition today.