What's the latest about French e-invoicing?
France in Focus: La Facturation et les Rapports électronique
On the 15th of October 2024 the Ministère Chargé du Budget et des Comptes Publics, did a press release advising on a transition in the development of e-invoicing and e-reporting in France.
The simplification of electronic invoicing is a foremost step towards the dematerialisation of electronic transactions. The prerogative, being, to simplify the relationship between the tax authorities and professional users, with the addition of strengthening the competitiveness of business enterprises, due to the improvements of payment terms and the exposition of invoicing developments.
The Générale des Finance Publiques (hereinafter referred to as “DGFiP”) stated that where the initial plan had been to offer users the choice of e-invoicing exchange between FREE Portail Public de Facturation (“PPF”) or electing an e-invoicing agent, being a Partner Dematerialisation Platform (“PDP”); businesses must now find and elect their own PDP. Thus, the illustrious ‘end’ or dilution of the termed “Y”-invoicing model.
Business enterprises are therefore to nominate an e-invoicing agent (PDP), exclusively, which could include their established accounting system provider or ERP vendor.
On the 16th of September 2024 a non-comprehensive list of PDP registered entities can be consulted in the ‘Partners area’ on the impots.gouv.fr, which remains subject to change and regular updates with new partners. The DGFiP is confident in the ability of platforms to guarantee quality services and their ability to adapt to the current and future needs of business entities.
More than, approximately, seventy (70) ‘Dematerialisation Platforms’ have been registered, in accordance with the Decree of the 25th of March 2024. Accordingly, confirming a high degree of interest, engagement and preparation of the electronic environment and dematerialisation operators for the reform.
How does this “reform” affect the e-invoicing and e-reporting timeline?
The reform’s purpose is to ensure the intended launch-date of the e-invoicing and e-reporting mandate of September 2026.
Article 91 of Finance Law of 2024 (No. 2023-1322 of 29 December 2023) establishes a gradual roll out of the e-invoicing and e-reporting mandate. The legislation asserts that from the 1st of September 2026, large to intermediate-sized business entities will have the obligation to receive and issue e-invoices; and from the 1st of September 2027, small and medium-sized business entities will have the obligation to receive and issue e-invoices.
What is the current implementation plan for electronic billing-and-reporting?
· 2024:
o Quarter Two- Quarter Three (June, July)
§ Restart of the registration for certified dematerialisation platform agents (PDPs)
§ The release of the B2B external specifications, Version 2.4, in June 2024
§ PDPs will NOW require Peppol authority recognition to solve the issue of interoperability, having caused the delay in the July 2024 mandate.
o Quarter Four
§ Expected release of the final technical specification and the roll-out of the mini-pilot for a selected number of PDPs
· 2025:
o The release of the Full pilot for interoperability testing
· 2026:
o All businesses must have the ability to accept e-invoices;
o B2B e-invoicing and e-reporting for Large to Intermediate-sized business entities (>250 employees and exceeding either, € 50 mil Turnover, or € 43 mil Balance Sheet)
· 2027:
o E-invoicing and e-reporting for Small and Medium-sized business entities, that fall under the abovementioned thresholds.
En guise de conclusion
The reorientation of the French e-invoicing and e-reporting process ensures the possibility that the timeline provided for in the Finance Act for 2024 is met and the necessary parties are defined, certified and respected.
P.S.
Users that fall under the e-invoicing mandate will be required to appoint a certified and registered PDP.
