Understanding electronic invoicing
Electronic invoicing, also known as “e-invoicing”, is the mechanism for issuing, sending and receiving invoices in a structured digital format. This approach promotes efficient, automated processing. It is crucial to understand that an electronic invoice is not simply a scanned copy or PDF of a traditional invoice, but rather a document with a set of standardized data that ensures its authenticity, integrity and legibility.
This process takes place via dematerialization platforms dedicated to the transmission of invoices between companies and to tax authorities. There are two main categories of platform: public billing portals (PPF), which are free and open to all companies, and partner dematerialization platforms (PDP), which are paid services offering additional functionalities. PDPs must obtain official registration from the tax authorities, who regularly publish a list of approved operators.
Opting for electronic invoicing brings a multitude of benefits to businesses, whether from an economic, ecological or security point of view. These include lower costs, shorter payment times, fewer errors and less risk of fraud, as well as reduced environmental impact compared to paper invoicing. In addition, this solution simplifies VAT declarations thanks to an automatic pre-filling system.
In short, electronic invoicing contributes significantly to a better understanding of economic activity, offering an effective lever for adjusting economic policies in line with reality on the ground.
What are the advantages of electronic invoicing?
Opting for electronic invoicing offers a multitude of advantages to companies, enabling them to improve their invoicing management while complying with regulatory standards. Discover the major benefits of electronic invoicing below:
- reduced costs: switching to electronic invoicing significantly reduces expenses associated with printing, shipping and processing invoices. More accurate management also minimizes invoicing errors, avoiding unnecessary penalties and disputes.
- save time and efficiency: streamline the invoicing cycle by eliminating the waiting time associated with processing paper invoices. Invoices can be created, sent and received instantly, ensuring faster receipt by customers.
- improved data security: electronic invoicing enhances information security. It ensures the authenticity, integrity and readability of data, stored in encrypted databases and protected against alteration, loss or theft.
- easier archiving: it simplifies invoice storage by minimizing the costs and constraints associated with physical storage. Data can be kept for long periods in easily accessible databases.
- improved environmental impact: by reducing paper consumption and the carbon emissions associated with transporting paper invoices, electronic invoicing promotes an ecological approach, reducing the environmental footprint of companies.
Legal framework and obligations
Legal rules closely regulate electronic invoicing, aiming to ensure its authenticity, security and compliance. Companies that fail to comply with these guidelines risk financial penalties.
It is crucial to be aware of the following obligations:
- from 2026, electronic invoicing will be mandatory for all companies subject to VAT in France, with a gradual implementation based on company size. The system will apply exclusively to domestic transactions. Electronic invoices, containing a set of basic structured data, will have to be issued, sent and received.
- also from 2026, a new obligation to transmit invoicing data to the tax authorities will come into effect, following the same timetable as for electronic invoicing. This rule applies to all transactions carried out by companies subject to VAT in France, even those exempt from electronic invoicing, such as transactions with private individuals, non-taxable players, or foreign companies. Companies will be required to provide the tax authorities with details of their invoices and international or non-taxable transactions.
using a dematerialization platform to exchange electronic invoices between companies and with the tax authorities is mandatory. Companies can opt for the public invoicing portal (PPF), which is free and open to all, or choose certified private platforms (PDP), which charge a fee but offer additional services. The tax authorities will keep an up-to-date list of authorized PDPs.- companies must guarantee the authenticity, integrity and legibility of electronic invoices, in compliance with the French General Tax Code and Commercial Code. Invoices must be created, sent and received in digital and structured format to ensure the veracity of their origin and content, and they must be kept for six years to be available in the event of an audit.
- regarding penalties, issuing a non-electronic invoice in violation of legal requirements can result in a fine of 15 euros per invoice, with a maximum of 15,000 euros per year. Similarly, failure to declare invoices to the tax authorities can result in a fine of 250 euros, also capped at 15,000 euros per year.
How to implement and adopt electronic invoicing?
To successfully implement and adopt e-invoicing, companies need to be prepared and supported throughout the process. They need to adapt their information systems and internal processes, and maintain fluid communication with their partners. Here are the main steps to follow:
- choosing the right solution: select an e-invoicing solution that meets your specific needs and those of your business sector. Numerous options are available, each offering different functionalities and services at different prices. You can opt either for the Public Billing Portal (PPF), a free solution suitable for all businesses, or for a Partner Dematerialization Platform (PDP), a paying option that can offer additional services. Note that PDPs must be approved by the tax authorities, who provide a list of eligible platforms.
- compliance with technical standards: make sure you comply with the technical standards and e-invoicing formats required by regulations. Electronic invoices must include a set of essential structured data to guarantee their authenticity, integrity and readability. Accepted formats include XML, signed PDF, PDF/A-3 and Factur-X.
- team training and awareness: it’s crucial to inform and train your teams about e-invoicing, highlighting the advantages, obligations and practical aspects of this reform. Effective communication with your staff, customers and suppliers is essential to facilitate the transition to paperless invoicing.
- test and validate the chosen solution: before full deployment, it is advisable to test and validate your e-invoicing solution. Carry out simulations and quality checks to ensure that the solution works properly, is compatible with existing systems, and complies with legal requirements.
- deployment and follow-up: when deploying your electronic invoicing solution, plan a transition period during which paper and electronic invoicing will cohabit. This will help avoid service interruptions and disagreements. It is also important to set up performance and satisfaction indicators to assess the effectiveness and impact of the transition to electronic invoicing.
What are the consequences for the collection process?
Electronic invoicing brings significant benefits to the debt collection process, often a source of concern for companies. This technology helps to minimize unpaid invoices, speed up payments, and improve transaction tracking. Let’s explore the major impacts of dematerialized invoicing on collections:
- reducing non-payment and managing customer risk: by improving the quality and reliability of invoices, electronic invoicing reduces the risk of non-payment and enables better management of customer risk. Dematerialized invoices are less prone to errors, disputes and losses, facilitating better payment management and more accurate assessment of customer risk.
- faster collection: e-invoicing also reduces processing and payment times by sending and receiving invoices instantly, eliminating postal delays or inventory management problems. The ease with which electronic invoices can be validated and paid encourages compliance with payment deadlines, and reduces delays.
- easier payment tracking: with greater visibility and traceability, electronic invoicing improves payment tracking. Invoices are stored securely, allowing easy access to their history and current status. Integration with accounting or ERP software enables follow-up reports to be produced, simplifying receivables management and optimizing cash flow.
Perspectives and conclusions
Electronic invoicing represents a significant transformation in the invoicing landscape in France, marking a crucial evolution for businesses through the introduction of new responsibilities and practices. The aim is threefold: to combat VAT fraud, lighten reporting obligations and enhance understanding of economic dynamics.
This reform brings considerable benefits for companies, notably in terms of improved invoice management, compliance with regulatory standards, and more efficient collection processes.
However, the adoption of electronic invoicing brings with it challenges and risks. It requires careful preparation and support for companies to adapt their technological infrastructures, internal procedures, and collaboration with business partners.
It also demands vigilance and a high level of security to prevent cyber-attacks, technical errors and possible financial penalties. What’s more, this transition requires the commitment and collaboration of all players, both public and private, to ensure its success.
For companies, electronic invoicing is a strategic challenge that requires anticipation of this major change. Chartered accountants play an essential role in this transition period, offering advice, training and reassurance to their clients.
What’s more, this development offers chartered accountants the opportunity to provide additional high-value services, such as auditing, supervision and tax consultancy.
In short, electronic invoicing is an effective way of speeding up payments, complying with regulations, improving management and contributing to the national economy. For companies, it represents an opportunity to strengthen their competitiveness, operational efficiency and social responsibility. For chartered accountants, it highlights their advisory role, strengthening their relationship of trust and proximity with their clients.
