Mandatory from next September for all businesses, electronic invoicing is radically transforming the administrative and financial operations of French businesses subject to VAT. Beyond mere regulatory compliance, this reform creates a need for new equipment and a reorganisation of processes within organisations. Discover the benefits of electronic invoicing for your business, the solutions available to you and how to implement them.
What is electronic invoicing?
The concept of electronic invoicing is often mistakenly reduced to simply sending a PDF via email. The regulatory reality, however, is quite different: an electronic invoice, as defined by the reform, is a document issued, transmitted and received in a structured digital format (readable and automatically processable by a computer system) and must be sent via a state-approved platform.
Three electronic invoicing formats are recognised by the authorities:
- UBL (Universal Business Language),
- CII (Cross-Industry Invoice),
- Factur-X, a so-called ‘hybrid’ format that combines a structured data file with a visual PDF rendering. The latter has the advantage of being readable by humans whilst incorporating data that can be processed by accounting and tax software.
This technical definition has a direct implication: any paper invoice, ordinary PDF or document sent by email without going through an authorised platform will be considered non-compliant as soon as the reform comes into force.
The break with current practices is therefore substantial and warrants immediate attention: understanding the system in its entirety is essential to fully capitalise on the opportunities it offers.
The legal framework in France and Europe
The French reform is part of a broader European movement aimed at strengthening the fight against VAT fraud and improving real-time visibility of economic activity.
In Europe, several countries have already taken the plunge:
- Italy rolled out B2B electronic invoicing across the board in 2019,
- Poland and Spain are currently rolling it out.
The ViDA Directive (VAT in the Digital Age), adopted at European level, provides for the harmonisation of rules by 2030.
In France, the 2020 Finance Act laid the foundations for this reform, which was clarified by the 2021 Order and subsequent implementing decrees. The scope is clear: all transactions between businesses established in France and subject to VAT are covered, regardless of the size of the organisation – including micro-entrepreneurs and the self-employed.
Implementation timetable: key dates
The roll-out of electronic invoicing is planned in two phases:
- From 1 September 2026: all businesses, regardless of size, must be able to receive electronic invoices. Large enterprises and medium-sized enterprises will, from the same date, be required to issue their invoices in electronic format.
- From 1 September 2027: the requirement to issue invoices electronically is extended to SMEs and micro-enterprises.
This phased timetable should not be interpreted as a grace period.
Micro-enterprises and SMEs supplying large companies must be ready to receive electronic invoices from 2026, and their key account clients expect them to be fully operationally responsive.
E-reporting: an additional requirement
The reform is not limited to business-to-business invoicing. It includes two additional requirements grouped under the term ‘e-reporting’:
- the electronic transmission of transaction data (for sales to private individuals or intra-Community transactions)
- the transmission of payment data for services subject to VAT on payments received.
These data flows are intended to feed the tax authorities in near real time, with a view to pre-filling VAT returns.
The benefits of switching to electronic invoicing
For many business leaders, electronic invoicing is initially seen as an additional regulatory burden – a common perception that nevertheless offers only a partial view of the system’s implications for businesses.
When properly prepared, the transition generates substantial benefits across several areas, particularly for small businesses seeking solutions to tackle unpaid invoices:
- Measurable productivity gains, whereas the manual processing of paper or PDF invoices represents a significant administrative cost: data entry, archiving, reconciliation, and reminders. Electronic invoicing automates these tasks, reduces data entry errors and frees up time for higher value-added activities. Industry estimates indicate a reduction in processing costs of between 60% and 80% for invoices that are fully digitised in a structured format.
- Direct improvement in cash flow: enhanced traceability of the invoicing cycle allows for precise monitoring of the status of each invoice. This results in shorter payment times and the introduction of an indicator directly linked to working capital requirements (WCR). Early detection of disputed or blocked invoices facilitates targeted reminders and naturally improves collection performance.
- Greater financial visibility for the authorities through e-reporting, in return for which businesses will benefit from pre-filled VAT returns, simplifying their reporting obligations. For finance departments, this also presents an opportunity to enhance the reliability of their accounting and cash flow forecasts through structured data that can be automatically processed.
- Better combating unpaid invoices: the digitisation of the invoicing process reduces the risk of disputes arising from non-receipt or tampering with invoices. It also facilitates the compilation of evidence in the event of disputes over unpaid invoices: for businesses facing such issues, this is a real asset and a significant time-saver.
How to implement electronic invoicing? Step by step
Implementing electronic invoicing requires a structured approach, involving all of the company’s administrative, accounting and commercial processes.
Step 1: audit the current system
First and foremost, map out your invoicing flows in detail:
- annual volume of invoices issued and received,
- management tools in place (ERP, invoicing software, accounting software),
- formats currently used and the scope of the customers and suppliers concerned.
This analysis enables you to identify priority areas and scale the project.
Step 2: choose the accredited platform that meets all your needs
To send and receive electronic invoices, you must use a partner e-invoicing platform, registered by the government under a specific procedure. These accredited private operators guarantee format compliance, secure exchanges and the transmission of data to the authorities.
You are free to choose your partner e-invoicing platform, but this is a key decision. Therefore, when selecting your approved platform, several criteria warrant your attention:
- compatibility with existing management software,
- the features offered (legal archiving, invoice status management, dashboard),
- the level of service and support
- the pricing model.
It is strongly recommended that you consult your chartered accountant to select the platform that will meet all your needs, particularly for SMEs that do not (always) have dedicated in-house resources.
Step 3: train your teams, adapt your invoicing processes
The reform affects not only accounting and finance departments, but also sales teams, procurement and potentially the legal department.
Training the relevant staff, updating the general terms and conditions of sale and framework agreements, reviewing invoice validation processes and defining rules for managing receipt statuses are all tasks that need to be planned for.
Step 4: test and roll out
Before the reform comes into force, it is strongly recommended that you carry out sending and receiving tests with a few key business partners.
Approved platforms generally offer test environments. This phase allows you to identify any necessary adjustments and ensure a smooth operational launch.
Electronic invoicing and customer risk management: a link that should not be overlooked
By making the processing workflow transparent and traceable, electronic invoicing helps reduce delays caused by non-receipt or formal disputes over invoices. However, it does not replace an active customer risk management policy: indeed, electronic invoicing is merely one link in the chain of securing trade receivables. It improves traceability and reduces administrative friction but does not protect the company against the risk of its customers becoming insolvent. The issue of non-payment risk remains unresolved, and a comprehensive approach to accounts receivable management remains essential.
To turn the risk of non-payment into a performance driver, digitisation should be combined with:
- tools for monitoring the creditworthiness of trading partners,
- effective debt recovery procedures
- and, where appropriate, a credit insurance solution to cover the risk of non-payment in both the domestic and export markets.
This combination offers not only financial protection but also early visibility into the risk profile of the customer portfolio.
Similarly, integrating an effective debt recovery system enables swift action in the event of non-payment, based on solid factual data, of which the traceability provided by electronic invoicing is a key component.
FAQ
What is the difference between electronic invoicing and digitisation?
The digitisation of invoices, i.e. the scanning of a paper document or the sending of a PDF, has been a widespread practice for years, but it does not meet the requirements of the current reform.
Electronic invoicing requires a structured format, transmission via an approved platform and the submission of data to the authorities (e-reporting). In other words, it is not the medium that changes, but the entire processing workflow.
Which documents must be issued in electronic format?
All invoices issued in connection with transactions between VAT-registered businesses established in France are affected. This includes:
- invoices for the sale of goods,
- invoices for the provision of services,
- credit notes and corrective invoices.
Transactions with private individuals (B2C) are not subject to the obligation to issue invoices in electronic format but are subject to e-reporting of the transaction.
What are the risks of non-compliance with electronic invoicing?
Failure to comply with electronic invoicing obligations exposes the company to tax penalties.
Administrative fines may be imposed by the tax authorities, and, beyond the financial aspect, non-compliance can undermine commercial relationships with partners who are strict about compliance.
Can the issuing of electronic invoices be delegated to a service provider?
Yes, the regulations allow a company to appoint a third party (service provider, chartered accountant or specialised platform) to issue electronic invoices on its behalf. This invoicing mandate must be formalised in a contract and does not relieve the ‘principal’ company of its responsibility for the compliance of the invoices issued. This option is particularly attractive for micro-enterprises and SMEs that do not wish to handle the technical management of the system in-house.
What are the differences between a private platform and Chorus Pro?
Chorus Pro is the public platform managed by the State, now mandatory for invoicing with public sector entities (the State, local authorities, hospitals).
It will also be available for B2B transactions as part of the reform, but only for small businesses wishing to use it free of charge.
Approved private platforms generally offer more extensive features:
- invoice status management,
- legal archiving,
- integration with management tools,
- dashboards and value-added services.
Can an electronic invoice be rejected by a customer?
Yes, a customer may reject an electronic invoice if they believe it does not correspond to the order placed or if it contains errors.
In this case, the approved platform must allow for the management of this rejection status.
The issuer will then need to issue a corrective invoice or a credit note.
This status management mechanism (issued, received, accepted, refused, disputed) is one of the major improvements of the reform compared to current practices.
What is the legal retention period for an electronic invoice?
Electronic invoices must be retained for ten years, just like paper invoices, in accordance with the Commercial Code and the General Tax Code.
Approved platforms generally offer an integrated archiving service with probative value, guaranteeing the integrity and authenticity of documents throughout the statutory retention period.
How can the authenticity and integrity of an electronic invoice be guaranteed?
The regulations recognise three methods for guaranteeing the authenticity of the origin and the integrity of the content of an electronic invoice:
- the qualified electronic signature (based on a digital certificate),
- fiscal EDI (electronic data interchange via a secure protocol),
- and the reliable audit trail (RAT), which involves documenting the process linking an invoice to the underlying commercial transaction.
Transmission via an approved platform guarantees compliance with these requirements.
Which sectors are already subject to the electronic invoicing requirement?
The public sector is leading the way in France: since 2020, all businesses invoicing public bodies have been required to do so via Chorus Pro.
In the private sector, the 2026–2027 reform will extend the requirement across the board.
At European level, Italy sets the standard: the roll-out of the Sistema di Interscambio (SDI) in 2019 has enabled the recovery of several billion euros in evaded VAT in just a few years, illustrating the potential of the reform for public finances.