E-Invoice and E-Reporting in France

France, which implemented e-Invoicing in a step-by-step approach for B2G transactions since 2017, plans to introduce mandatory B2B e-invoicing and e-Reporting from 2023. This includes prepayment of sales invoices through the government’s Chorus Pro portal. First, local B2B invoices are recorded. In addition, local B2C and cross-border transaction data for sales invoices must be reported to the French Tax Authority.

Both requirements are implemented as follows:

  • January 2023 – Large companies

  • January 2024 – Medium-sized companies

  • January 2025 – Small companies

Invoices created in SAP are linked to the invoice groups created in Melasoft SAP e-Invoice cockpit and sent to the IOP via the private integrator and forwarded to the e-invoice recipient.

Companies must apply for digital access to Chorus Pro. You can then upload sales invoices in one of the following ways:

Manual entry

PDF or XML invoice upload

EDI or API connection

The collection of invoices and their data is used by many countries in Europe. In addition to simplifying administration, it also helps fight fraud. Electronic invoicing, a community obligation in exchange with management, will be extended to business-to-business transactions in France.

The Directorate-General for Public Finances (DGFiP) examines the generalization of e-invoicing and explains the reform envisaged by the government in its October 2020 report “VAT in the digital age in France”. To be effective, electronic invoicing (e-invoicing) should be done in conjunction with electronic transmission of data (e-reporting).

Goals and advantages of electronic invoices

Article 153 of the Finance Act 2020 regulates electronic invoicing obligations for all companies that are subject to VAT between January 1, 2023 and January 1, 2025 (depending on their size). Four goals were defined:

  • Lift restrictions on paper invoice processing and safe trading

  • Reducing the VAT deficit through tax evasion and automatic cross-checks

  • Knowledge of corporate activities to encourage detailed management of government policies

  • To facilitate the VAT return through pre-filling.

According to the DGFiP report, electronic invoicing offers numerous advantages:

  • Low cost (less than one euro compared to more than ten euros for paper invoices)

  • Continuous automatic billing chain

  • Regular monitoring of the progress of invoice processing

  • Limitation of disputes regarding payment terms

We offer our customers the Melasoft SAP e-Invoice Solution via the SAP system, with which they can manage their e-invoice processes with the SAP system, which is fully integrated with the French Tax Authority (DGFiP).