UPDATE: France to introduce mandatory B2B e-invoicing and reporting

28 February 2023

In May 2023, the certification process for approved French e-invoicing agents ‘partner dematerialization platform (PDP)‘ was opened.  

Resident businesses who are subject to the new mandatory real-time invoice-reporting regime in France can either use a PDP to submit their invoices to the French tax authority or submit these themselves via the French e-invoicing portal (PPF). If a PDP is used, it will provide an interface between the taxpayer and the PPF.

This new mandatory real-time invoice-reporting regime for resident businesses will apply to all its domestic B2B transactions in the country. The deadline for the introduction of the regime will be staggered depending on the size of the business as per the below:

• From 1 July 2024 - Large enterprises (enterprises with more than 5,000 employees and either a 12-month turnover exceeding EUR 1.5 billion or a balance sheet exceeding €2 billion)
• From 1 January 2025 - Intermediate enterprises
• From 1 January 2026 - Small and medium enterprises (enterprises with less than 250 employees and either a 12-month turnover not exceeding €50 million or a balance sheet not exceeding €43 million)

This new regime will impact resident businesses that sell to other VAT registered businesses in the country and will force them to declare their sales to the French tax authorities via a new e-invoicing platform. This is instead of sending invoices to their customers themselves.

The French tax authority will then check these invoices, and if correct, it will approve them by applying a digital stamp. It will then send the invoice directly to the customer on behalf of the supplier via the new system.

It is hoped this new invoice-reporting regime will prevent common errors on these types of invoices and help prevent VAT fraud in the country.