Electronic invoicing: the deadline is approaching

The obligation to switch to electronic invoicing is a far-reaching reform that will soon affect all French companies. Far from being a mere administrative constraint, it's an opportunity to modernize your business, boost productivity and cut costs. In a few words, here's what's changing, when and how to prepare.

1. The advantages of electronic invoicing

An electronic invoice is not a simple PDF sent by e-mail. It is a document that meets three fundamental conditions: it is issued, transmitted and received in a format that incorporates structured, machine-readable data (Factur-X, UBL or CII).
Electronic invoices are sent via a secure electronic circuit, guaranteeing the authenticity of their origin and the integrity of their content.

The main objectives of this reform for the State:
- simplify VAT returns (pre-filling of returns);
- reinforce the fight against VAT fraud;

- Improve real-time knowledge of business activity.

For companies, the objective is fourfold:

\ A better traceability of exchanges and actions;

- Improve the quality of the data exchanged;

- Improved competitiveness (shorter payment times and reduced administrative burden);

- and a reduction in payment times.

2. Who is affected?

Since 2020, electronic invoicing has been compulsory for companies contracting with public bodies.
In 2026, this obligation will be extended to all business-to-business (B2B) transactions between companies established in France.
- whether you're a tax-exempt, simplified or standard VAT payer

- Whether you're in mainland France or the French overseas departments (Martinique, Guadeloupe and Reunion)

-regardless of your legal status (self-employed, sole proprietorship or company).

Exceptions:
- If your customer is a foreigner, you can continue to send him an invoice in paper or PDF format by e-mail. They are not obliged to receive electronic invoices. For your other customers affected by the reform, you will have to switch to electronic invoicing.

- If you carry out exclusively VAT-exempt operations within the meaning of articles 261 to 261 E of the CGI (in particular educational establishments, certain training organizations ,non-profit organizations)

- Individuals and associations not subject to VAT

- Companies based in the French overseas departments and territories (French Guiana, Mayotte, Saint Pierre et Miquelon, Saint Barthélemy, New Caledonia, French Polynesia, Wallis and Futuna).

3. Obligations

The system is based on a dual obligation for companies subject to VAT

• E-invoicing (or electronic invoicing): obligation to issue and receive your sales invoices between companies established in France (B2B flows) in electronic format.

• E-reporting: obligation to transmit data to the tax authorities on transactions that do not give rise to an electronic invoice:

  • B2C transactions, including online and in-store sales.

  • Transactions with foreign companies (international B2B).

  • Payment details for services, for which VAT is due on receipt of payment.

4. The calendar

- From September 1, 2026: All companies, whatever their size, must be able to receive electronic invoices from their suppliers.

- From September 1, 2027: Small and medium-sized enterprises (SMEs) and micro-businesses will be obliged to issue their invoices in electronic format and transmit the e-reporting data to the tax authorities.

Failure to comply with these obligations may result in financial penalties:

15 euros per non-compliant invoice for e-invoicing, up to a maximum of 15,000 euros per year.

250 euros per non-compliant transmission for e-reporting, up to a maximum of 15,000 euros per year.

4. Choosing the right service provider

To meet these obligations, you'll need to use a dematerialization platform. The French government has set up a three-player ecosystem:

Public Billing Portal (PPF):
Initially planned as a one-stop shop for small businesses, this project was abandoned in that form. The PPF is now a technical hub, centralizing tax data transmitted by private platforms (PDP) for the administration and managing the business directory. You won't be using it directly.

The Partner Dematerialization Platform (PDP):
This is the key player for you. This is a private platform that has been registered by the tax authorities to issue and receive electronic invoices in full compliance. It extracts tax data and forwards it to the PPF, acting as both a "digital factor" and a "tax agent". You can consult the list of registered platforms on the tax authorities' official website here: https: //www.impots.gouv.fr/liste-des-plateformes-de-ematerialisation-partenaires-pdp-immatriculees-sous-reserve.

Dematerialization Operator (OD):
This is a technical service provider not registered with the French government, who acts as a bridge between your management software (ERP, CRM) and a PDP.

5. How to prepare, step by step

Switching to electronic invoicing is an optimization process. Anticipating the change will enable you to look calmly for the best option for your company.

Take stock of your business.
Identify your incoming and outgoing invoicing flows: what is your invoice volume? Who are your customers (individuals, French companies, foreign companies)? What invoicing tools do you currently use (software, spreadsheet, other)? This "mapping" will enable you to choose the solution best suited to your needs.

Choose your solution. You have several options for compliance

- Issue your invoices and transmit your data manually using the services provided by certain platforms:

manual entry, which may be offered by some platforms;

use of a dedicated tool on certain platforms to transform an invoice issued in simple PDF format into a digital invoice in one of the expected standardized formats.

- Go through your CPA: This is a simple solution if you have a low volume of invoices. Your accountant can take care of issuing, receiving and reporting on your behalf. If this is the case, contact your accountant now to make sure that he or she is preparing the processes associated with the new obligation, and to find out how it will work for your business.

- Use your current accounting software: Most accounting software will offer a "connector" that allows you to link to a PDP or OD. Contact your software vendor to find out about their strategy and possible costs.

- Choose a Partner Dematerialization Platform (PDP) or a Dematerialization Operator (OD) to handle exchanges with a PDP.

If you have a larger volume of invoices, choosing a dedicated PDP can offer you additional services, such as legal archiving or accounting integration, which will further simplify your processes. Thelist of PDPs registered under reserve can be found here: https: //www.impots.gouv.fr/liste-des-plateformes-de-dematerialisation-partenaires-pdp-immatriculees-sous-reserve. Our partner Indy is one of them, so don't hesitate to ask for their membership benefits.

Platforms (PDP or OD) can offer complementary services, including an archiving solution.

Check compatibility and test.

Make sure your tools can generate invoices in the required formats (Factur-X, UBL, CII).

Once you've chosen a solution, test the end-to-end process: from transmission to receipt by your customer, including status tracking.

Electronic invoicing doesn't have to be compulsory. As an entrepreneur, you have the choice of platform and support strategy.

By anticipating the deadlines of September 2026 (reception) and September 2027 (issue), you can turn this reform into a strategic lever for your company.

Find out more:

https://www.francenum.gouv.fr/guides-and-consulting/management-company/dematerialization-documents/invoicing-electronically

fact sheets prepared by the DGFIP: https: //entreprendre.service-public.fr/actualites/A17853