Begrip the Mandatory E-Invoicing in France
Everything you need to know about the 2024 e-invoicing mandate in France
In September 2019, the French government announced that businesses in France will be required to use e-invoicing for all B2B transactions between January 1, 2023, and January 1, 2025.
This means that businesses will therefore no longer be able to use paper or PDF invoices. They will need to switch to electronic invoicing in order to comply with the law. The e-invoicing mandate is part of the French government’s efforts to improve business automation and efficiency, reduce costs, and increase tax compliance.
This mandate will have a significant impact on businesses operating in France. It requires them to adopt new invoicing systems and technologies, and to ensure their invoices are compliant with government regulations. Failure to comply with the e-invoicing mandate could result in penalties and fines from the government. Therefore, it’s important for businesses to start preparing for the e-invoicing mandate now to ensure a smooth transition and avoid any potential penalties.
On this page, we'll provide you with all the information you need to know about the e-invoicing mandate in France, including how to comply.
What is the French e-invoicing mandate?
The e-invoicing mandate in France requires all businesses to use electronic invoicing for B2B transactions between January 1, 2023, and January 1, 2025. This mandate applies to all businesses, regardless of their size or industry, that invoice other businesses in France. The aim of the mandate is to improve business efficiency, reduce costs, and increase tax compliance. All by moving away from paper-based and PDF invoicing.
The e-invoicing mandate requires businesses to issue and receive electronic invoices that comply with government regulations. These invoices must be structured in a specific format that allows for automated processing and archiving. Businesses must also ensure that their invoicing systems and processes are compliant with the mandate. Adequate measures need to be put in place to prevent fraud and data breaches.
Non-compliance with the e-invoicing mandate can result in government penalties and fines. The penalties for non-compliance are significant. They can range from 0.5% to 2% of the total value of the transactions that were not invoiced electronically. Additionally, businesses that fail to comply may face delays in payment, damage to their reputation, and legal liabilities.
It's important for businesses to start preparing for the e-invoicing mandate now in order to ensure compliance by the deadline.
How to comply with the French e-invoicing mandate
In-house e-invoicing
Businesses can develop their own e-invoicing system in-house. This allows them to have full control over the system and its features. However, this option requires significant investment in time and resources, as well as expertise in e-invoicing technology.
Third-party e-invoicing providers
Businesses can also choose to work with third-party e-invoicing providers. These providers offer compliant e-invoicing solutions, such as B2BE. Find out more here.
Electronic invoicing platforms
Another option is to use electronic invoicing platforms. These provide a central platform for creating and sending e-invoices. The platforms can also integrate with other business systems and automate invoice processing. All of which makes invoicing more efficient and reducing errors.
When choosing an e-invoicing solution, businesses should consider factors such as cost, ease of use, and compatibility with existing systems. It’s important to select a solution that is compliant with government regulations, and that provides adequate security measures to protect against fraud and data breaches.
To comply with the e-invoicing mandate, businesses must also ensure that their invoicing processes are fully integrated with their accounting and payment systems. This will help to ensure that invoices are processed efficiently and accurately, and that payment is received in a timely manner.
Don't wait until the last minute – start preparing now to avoid penalties and ensure smooth business operation.
If you have any questions or concerns about the e-invoicing mandate, or need assistance with implementing compliant e-invoicing solutions, we're here to help.
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