On July 1 a Company Receives an Invoice for 800

Mandatory e-invoicing and eastward-reporting in France from July ane, 2024

French republic will introduce mandatory e-invoicing and e-reporting in a phased approach starting July 1, 2024. All French businesses will need to be able to receive e-invoices from their suppliers from this date. We take gear up out some of the primal details of this new mandate below:


What new legislation has been passed?

French republic passed Ordinance No. 2021-1190 on September xv, 2021 and this was published in the French Official Journal on September 16 2021. This legislation confirms the introduction of:

  • Mandatory due east-invoicing for domestic business organization-to-business organisation (B2B) transactions
  • Mandatory e-reporting of transactional data for cross-border B2B transactions (both sales and purchases), B2C transactions taxable in French republic and payment data for services.

Business concern-to-Authorities (B2G) e-invoicing has already been implemented in France from 2017 and has been mandatory since January 1, 2020. Businesses use the Chorus Pro platform to upshot east-invoices to public bodies and Government agencies and 140 million invoices have already been issued through this platform.


Who needs to comply with the legislation?

French VAT registered and established companies volition need to issue east-invoices to business customers in French republic. The e-invoicing mandate legislation does not currently apply to foreign businesses without an establishment in France. Notwithstanding, please note that some strange companies non established in France, but VAT registered in France, volition be bailiwick to the new eastward-reporting obligation where their customer is not a business customer (including private individuals). Where supplies of appurtenances or services are specifically exempt from VAT and therefore exempt from tax invoicing, they will too non fall within the scope of e-invoicing and east-reporting, for example certain banking and insurance services, medical and health services, educational services).


What is the timeline?

Due east-invoicing and east-reporting will be introduced in a phased approach across three phases depending on the size of the business. Nevertheless, all companies, regardless of their size volition be required to receive invoices in electronic format from July i, 2024 when their suppliers are required to outcome e-invoices. The first wave of companies that need to comply will exist large companies by July ane, 2024, followed by SMEs by January 1, 2025 and smaller SMEs/VSEs by January 1, 2026.


Why is France introducing mandatory e-invoicing and e-reporting?

The French Government’southward principal objectives of introducing e-invoicing and e-reporting are:

  • simplifying doing business organization in French republic and strengthening the competitiveness of French companies – with the switch to e-invoicing delivering an estimated saving of at to the lowest degree €four.5 billion
  • simplifying VAT reporting obligations through the pre-completion of VAT returns using the data received by the French Tax Authorization
  • improving fraud detection. France’s VAT Gap in 2019 was estimated to be EUR 13.9 billion, representing 7.four% of VAT not being collected
  • improving existent-time knowledge of business concern activities of companies.
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What is E-invoicing in France?

“E-invoicing” refers to the issuing, transmission and receipt of e-invoices in a mandated format and including a minimum base of data in structured class. French companies will be required to issue e-invoices to other French business organization customers.


What is East-reporting in France?

“East-reporting” refers to the transmission to the French tax administration of certain mandated data relating to transactions that are not covered past the e-invoicing mandate. Therefore, notwithstanding that there is no requirement for French companies to physically event east-invoices to individual consumers (B2C) or to customers based outside of French republic (including exports and intra-Community supplies), the transactional data must be submitted to the French tax administration. E-reporting will therefore complement e-invoicing and allow for the French tax administration to eventually pre-consummate VAT returns for French taxpayers. Imports of goods are not covered by eastward-reporting and this is because all Import VAT will at present exist reported through the VAT render (with automatic pre-filing in the VAT return based on import data  communicated by importers through the customs declaration).


What payment data needs to be submitted?

To assistance the French Taxation Administration with pre-filling VAT returns and determining the VAT collected, payment data for invoices or sales where the tax indicate date is on payment must be likewise reported past the supplier nether the east-reporting mandate, unless the supplier has been authorised to pay the VAT accounted for on an accrual ground under “régime des debits”, or the customer is liable to account for VAT under the reverse charge mechanism. We are awaiting further detail on the payment data that is required only this will likely include:

  • Date of payment collection
  • Amount collected including VAT (broken downwards past VAT rate if applicative).


Is at that place a mandatory platform to use for due east-invoicing or e-reporting?

Businesses can either ship e-invoices via an canonical tertiary-political party commercial partner platform (known as a partner dematerialisation platform or PDP) or via the public invoicing portal (the “Portail Public de Facturation” or PPF). Businesses will no longer send invoices direct to customers, instead the partner platform or public invoicing portal will send the e-invoice to the client’s platform.  The option of platform to receive the eastward-invoice from suppliers (vendors) is up to the business organization, it tin exist the same equally the supplier, a dissimilar commercial platform or through the public billing portal. However, the French Authorities has recently announced that PPF will only accept basic core functionality and that this will likely only be used past the very smallest companies in France. In add-on, e-reporting tin exist washed directly via PPF or via any platform – again this is the option of the business. PPF also allows the receipt and processing of east-invoices from foreign suppliers (thanks to its connection to PEPPOL) and provides basic legal archiving of the east-invoices processed via the platform.

A partner dematerialisation platform will be operated by an canonical service provider who will act as an intermediary and accept two central roles:

  • Responsible for transmitting the e-invoice from the supplier to the customer
  • Extract certain information from the due east-invoices and transmit this to the French revenue enhancement administration.

As the supplier will not be able to impose an e-invoice format on the customer, the partner platform may also convert the format of the e-invoice into a format requested by the customer. However, this must be done in a way that ensures the authenticity, legibility and integrity of the invoice information.


What mandatory e-invoicing data must be sent to the French tax administration?

Initially, 24 mandatory items (data or blocks of data) must be sent to the French tax administration. These include:

  • Unique identification number (SIREN) (for both supplier and customer)
  • Intra-community VAT number (for both supplier and customer)
  • Intra-community VAT number of supplier’s tax representative (if applicable)
  • Supplier’southward and client’southward Country
  • Category of supply eastward.g. goods or services
  • Invoice issue engagement
  • Unique invoice number
  • Number of the rectified invoice in the event of the issuance of a corrective invoice
  • Option for tax payment based on debits
  • Total sectional of VAT by VAT rate
  • Amount of corresponding VAT by VAT rate
  • Applicable VAT rate
  • Full amount to be paid exclusive of VAT
  • Amount of VAT payable
  • In case of exemption, the reference to the legal provision
  • Invoice currency code/designation
  • Mention “cocky-billing (if applicative)
  • Reference to a special scheme (if applicative)
  • Mention “Opposite charge” (if applicable)
  • Date of commitment of the goods or performance date of the service
  • Date of the deposit paid if it is unlike from the date of issue of the invoice.
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Additional items volition eventually be added at a later stage:

  • Toll markdown (discounts and rebates)
  • Detailed description of goods delivered or services rendered
  • Quantity of goods delivered or services rendered
  • Price exclusive of tax for each good delivered or service rendered
  • Delivery accost / accost of performance of service, if different from customer’s address (at least country)
  • Date of issue of the rectified invoice in the event of outcome of an alteration invoice
  • Eco contribution amount.


What mandatory e-reporting information must be sent to the French tax assistants?

In relation to international B2B transactions (cross-border goods and services to and from businesses exterior of France), the data to exist transmitted will be identical in format and content to that required under e-invoicing (but excluding the unique identification number of the foreign business organisation equally they won’t take a SIREN number).


What eastward-invoice format will be required?

In France there will be multiple acceptable formats for e-invoices. All partner platforms will offer a minimum number of common formats to guarantee the interoperability. The invoice tin can exist created in structured or mixed format, in one of the 3 base formats compatible with the EN16931 standard (this is the European union’south due east-invoicing standard):

  • UBL
  • CII
  • Factur-X

In addition, a PDF invoice can exist created (however please note that this however needs to run into strict technical requirements and businesses tin’t merely scan paper invoices). Factur-X is a hybrid document that combines both a human being readable PDF with machine readable XML language. This standard has been developed through cooperation betwixt French republic’s National Forum for Electronic Invoices and Electronic Public Contracts (FNFE-MPE) and Deutschland’s Forum elektronische Rechnung Deutschland (FeRD).


How can Avalara help with e-invoicing in French republic?

Avalara has an e-invoicing solution that can help companies stay compliant in over sixty countries including French republic. Contact an expert at Avalara to talk over how we can assist with the upcoming e-invoicing mandate in French republic.

On July 1 a Company Receives an Invoice for 800

Source: https://www.avalara.com/blog/en/europe/2022/03/mandatory-e-invoicing-and-e-reporting-in-france-from-july-1-2024.html

Originally posted 2022-08-03 14:22:52.

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