VAT in the Digital Age : France - Entry into force of electronic invoicing postponed to 2026

The French press office of the Ministry of Economy and Finance announced in July 2023 that the introduction of electronic invoicing would be postponed. Decree no. 2021-1190 of 15 September 2021 initially scheduled a staggered switch to electronic invoicing for French companies from 1 July 2024. Jérôme Fournel, Director of the French tax office, announced at the congrès des expert-comptables at the end of September 2023 that electronic invoicing would come into force in 2026. 

What is an electronic invoice?

With the generalisation of electronic invoicing, also known as e-invoicing, invoices between two taxable companies in France can be issued via an electronic platform or via the public billing portal. Chorus Pro to be transmitted. Only domestic transactions within France are affected.

From 1 July 2024, e-invoicing provided for electronic receipt of invoices for all taxable companies and electronic sending of invoices for large companies. In 2025, e-invoicing in the sending of invoices was also to come into force for medium-sized companies and from 2026 for small and medium-sized companies and micro-enterprises.

The aim of this electronic invoicing between French companies is to combat tax evasion, strengthen the competitiveness of companies through dematerialisation and reduced administrative burdens, and improve real-time knowledge of business activities.

The background to these regulations is the ViDa initiative (VAT in the Digital Age) proposed by the EU Commission at the end of 2022, which provides for the modernisation of the European VAT system by 2028.

What is the new timetable for France?

The exact timetable for the introduction of electronic invoicing will be announced as part of the Finance Act for 2024. The provisional timetable envisages completion of the public portal by the end of 2024. Qualifications and tests are planned for 2025, as well as the opening of the pilot phase for the public invoicing portal. In 2026, electronic invoicing will be introduced in the form of mandatory receipt and transmission. The aim is to strengthen the regulation from 2027.

If you have any questions, our German-French tax advisors and expert accountants in Paris and Bonn will be happy to provide you with personal advice. We are also happy to provide advice throughout France and Germany by telephone and video conference. Your German-French tax consultancy FRADECO.

Disclaimer of warranty

The greatest possible care has been taken in the preparation of these German and French newsletters, but changes, errors and omissions remain reserved. The abstract legal presentation in these newsletters cannot replace individual civil and tax law advice from a German-French consultant in relation to the individual case. Subsequent changes in the legal framework, the opinions of the German or French tax authorities or the case law, also with retroactive effects, are possible.