Reform for Electronic Invoicing in France: 10 Expert Tips for a Smooth Transition

Blog Summary

The entry into force of the generalization of electronic invoicing, initially planned for 2024, has been postponed following a decision taken in the context of regular consultations with stakeholders. The postponement will make it possible to guarantee the time necessary for the success of this reform, which is economically structuring.

Following the implementation of this reform, all transactions between companies subject to VAT, established in France, will be required to be dematerialized. This reform on the dematerialization of invoices aims to generalize e-invoicing, ie the use of electronic invoices.
This reform also serves to transmit invoicing data to the tax authorities. We then speak of e-reporting.

The implementation of an ERP adapted to the needs and constraints of companies allows them to benefit from the advantages of the dematerialization of invoices, such as regulatory compliance, productivity gains, cost reduction or data security.

Here are our ten tips to support you in this digitalization.

1. Comprehend Invoice Digitization and Its Associated Challenges

   The main principle of operation of invoice digitization is to replace paper invoices with electronic invoices, that is to say digital files which contain the same information and which have the same legal value.

2. Adhere to Timelines and Processes for Invoice Digitization According to Customer Type

   The deadlines and the conditions to be met for invoice digitization depend on the type of customer.

   Mandatory digitization for public customers commenced on January 1, 2020.
   For private customers, the new dates will be determined within the framework of the finance law for 2024. To find out more, visit the website: https://www.economie.gouv.fr/cedef/facturation-electronique-entreprises

   To fulfill these obligations, you must choose between utilizing an administration-affiliated digitization platform or the Chorus Pro public invoicing portal.

3. Mitigate Risks Linked to Non-Compliance with Invoice Digitization

   Numerous risks arise if your company neglects to implement invoice digitization, including time loss, financial implications, reduced productivity, decreased competitiveness, compromised traceability, security lapses, and non-compliance consequences. Non-compliance with electronic invoicing and invoicing data transmission constitutes legal breaches for French companies, resulting in financial penalties:

   • A fine of €15 for each non-electronic invoice, up to a maximum of €15,000 per annum.
   • A fine of €250 for failing to transmit billing data, up to a maximum of €15,000 per annum.

4. Verify Compatibility of Your IT Infrastructure for Invoice Digitization

   Your computer system is deemed compatible for invoice digitization if it adheres to prevailing technical and legal standards. Notably, it should generate, transmit, receive, store, and archive electronic invoices in XML or signed PDF formats. Additionally, it must guarantee the authenticity, integrity, and legibility of electronic invoices.

5. Implement Invoice Digitization within Your Company

   To initiate this process, several steps need to be followed: evaluate your present status, select a suitable software solution, train your workforce, inform your clients and suppliers, configure your IT system, assess process functionality through testing, and implement the transition incrementally.

6. Identify Key Stakeholders Involved in Invoice Digitization

   The primary actors in charge of implementing invoice digitization encompass your company (invoice issuer or recipient), your customers (invoice issuer or recipient), your software provider (solution provider), your trusted third-party provider (electronic signature or timestamp service provider), and your archiving service provider (electronic archiving service with probative value provider).

   The tax authority governs and collects invoicing data transmitted by companies, furnishing the Chorus Pro public invoicing portal, allowing companies to issue, receive, and transmit electronic invoices, along with transaction and payment data.

7. Estimate the Cost of Invoice Digitization

   The expenses associated with implementing electronic invoicing vary based on your company's size, invoice volume, chosen software solution, and supplementary services availed. Factors to consider include software acquisition or subscription costs, installation and configuration expenses, training and support charges, maintenance and update costs, as well as third-party service fees (electronic signature, timestamping, archiving).

8. Manage Errors and Disputes Linked to Invoice Digitization

   The right to rectify errors is governed by the adversarial principle. In the event of receiving an erroneous or incomplete e-invoice, rejection or dispute with the supplier is an option. Similarly, if an incorrect or incomplete electronic invoice is dispatched, it can be corrected or canceled with the customer. It is essential to adhere to the deadlines and terms stipulated by contracts or regulations.

   The chosen software solution for invoice digitization should possess the capability to address errors arising during invoice issuance or receipt, encompassing format, content, signature, transmission, or storage.

   The software solution must also allow you to correct errors if necessary, respecting the compliance rules applicable in each country. In France, you must issue a corrective invoice in the event of an error on an electronic invoice.

9. Ensure Security and Confidentiality of Electronic Invoices

   The level of security and confidentiality surrounding digitization is paramount. Electronic invoices are safeguarded by technical mechanisms (encryption, electronic signatures, timestamps) and legal measures (contracts, laws) that ensure authenticity, integrity, and legibility. Personal or sensitive data must be treated in accordance with the General Data Protection Regulation (GDPR).

10. Retrieve and Integrate Supplier Invoices in Electronic Format

    You can retrieve your supplier invoices in electronic format to integrate them into your accounting tool if your suppliers send them to you in this format and if your accounting tool is able to process them. Solutions exist that convert paper invoices into electronic equivalents through scanning or optical character recognition (OCR). Additionally, software solutions enable synchronization of electronic invoices with your accounting system via interfaces or gateways.