Over the past decade, European Member States and the European Commission have been pursuing thegoal of deploying electronic invoicing to facilitate business-to-business relations. France is leading and supporting these initiatives by implementing legal reforms and proposing mechanisms to facilitate this modernisation of exchanges.
A new e-invoicing system covers invoices for transactions between entities subject to VAT issued in electronic form and provides that the data they contain should be transmitted to the tax authority, in particular for the purpose of modernising the collection of value added tax and inspection methods.
The reform has four goals :
This new regulation will create two new requirements in particular :
As from 1 July 2024, receipt of invoices in electronic format will be mandatory for all companies
regardless of their size once their supplier is required to issue invoices in electronic format.
To take account the capacity of companies to adapt their invoicing processes, the requirements for e-invoicing and e-reporting will be applied gradually, in three steps :
The challenges for companies are many, on a technical, organizational and legal standpoint.
To ensure that this change is correctly implemented, companies subject to VAT in France will have to at least (i) identify their needs, particularly in relation to current invoices, and (ii) choose an intermediary platform as of July 1, 2024, to at least receive invoices from their suppliers