New mentions
Decree no. 2022-1299 of October 7, 2022, published in the Journal Officiel of October 9, 2022, introduces new compulsory information to be included on invoices from July 1, 2024.
The four new mentions are as follows:
Customer's SIREN number (9-digit company identification number)
The delivery address of the goods sold, if different from the customer's address
Information to the effect that the transactions covered by the invoice consist exclusively of supplies of goods or exclusively of services or both. (1)
The words " Option pour le paiement de la taxe d'après les débits " (" Option for payment of tax on the basis of debits ") when an option for this method of VAT payment has been made.
It is imperative that you add these new details to your invoices without delay.
It is important to remember that the tax authorities are entitled to impose a fine of €15 for each missing item on all invoices checked.
In practice, it is questionable whether the tax authorities will tolerate the application of the €15 fine for missing information. In order to be able to include the new information on invoices, taxpayers will need time to adapt their ERP and invoicing software.
The measure will not come into force until July1, 2024, but it is more than advisable to comply as soon as possible.
(1) The term "delivery" covers all transactions carried out for consideration involving tangible movable property, giving rise to a transfer of ownership. Under the terms of II ofarticle 256 of the French General Tax Code, the transfer of the power to dispose of a tangible asset in the same way as an owner is considered to be a supply of goods. This includes sales and exchanges.
On the other hand, IV ofarticle 256 of the CGI considers operations other than supplies of goods as defined in II of article 256 of the CGI. These include the sale or concession of intangible movable property, the leasing of tangible and intangible movable property, the leasing of immovable property, transport and ancillary services, real estate work, studies, research and expertise, as well as operations carried out by intermediaries acting in the name and on behalf of others. More generally, it covers all operations that fall within the scope of industrial leasing or contracts of enterprise, by which a person undertakes to carry out any work whatsoever, in return for a specific remuneration or in exchange for another service.
Pre-existing terms
All supplies of goods or services made by a taxable person(i.e. professionals in the broad sense of the term, and public bodies engaged in production, distribution and service activities) to another taxable person or to a non-taxable legal entity must be invoiced.
An invoice must also be issued, even if the customer is a private individual, for distance sales, exempt intra-Community deliveries and auction sales. By extension, the supply of goods or services to a private individual(acting in a private capacity) is not subject to the obligation to issue an invoice, except in the cases mentioned above. However, an invoice must be issued to private individuals for sales or services costing €25 or more. The company must keep a copy of the invoice. For sales or services costing less than €25, an invoice is not obligatory, unless the customer expressly requests one.
The invoice must be issued at the time of payment of the deposit, delivery of the goods or completion of the service.
Invoices must include certain information. Some statements are common to all companies, while others are specific and apply only in certain cases.
Mandatory information common to all companies
Relating to the parties
Company name and address of the seller or service provider, as well as those of the customer. The seller will indicate the address of its head office. The customer's address may be the head office or a secondary establishment.
Legal form, RCS registration and amount of share capital of vendor or service provider (in the case of a sole proprietorship, it is now necessary to specify Entreprise Individuelle or EI in the name preceding or following the entrepreneur's name).
VAT identification number of the supplier or service provider, and that of the customer if the latter carries out operations giving entitlement to deduct VAT (exemption for invoices ≤ €150 excluding VAT).
Date and invoice number
The invoice date must be the date of issue or, for invoices sent electronically, the date of issue.
Invoice numbers must be unique, based on a continuous, chronological sequence. Numbering may be established in separate series when justified by the activity.
On billed transactions
Each line of the invoice must show :
- The quantity of goods delivered or services rendered, expressed either in units of the good(weight, volume) or of the service(flat rate, hourly rate) according to industry practice.
- The precise name by which the goods or services invoiced can be identified, excluding the use of generic terms without reference.
- The unit price (excluding VAT) of the goods supplied or services rendered, which must be the price used to determine the VAT tax base.
- In the case of acquired and quantifiable rebates, discounts or discounts, these must appear on the invoice and be identified for each product/service concerned.
- In the case of acquired and quantifiable rebates, discounts or discounts, these must appear on the invoice and be identified for each product/service concerned.
- The applicable VAT rate.
- The words "service provided electronically" if this is the case.
Relating to all billed operations
It is only compulsory to indicate the date of delivery of the goods or the date of performance of the service on the invoice if this differs from the invoice date. However, it is advisable to mention it. For services, the period covered by the invoice must be indicated.
The buyer's purchase order number should also be indicated.
The VAT rate(s) need not be repeated for each line, but simply indicated once on the invoice, for each supply item subject to the same tax rate.
The invoice must show, by tax rate, the total excluding VAT and the corresponding VAT separately, as well as the total amount of VAT payable.
Companies invoicing their foreign customers for VAT in another country must clearly state this on their invoices to avoid any risk of confusion with French tax.
Payment terms and conditions
The invoice must state the payment deadline and the accepted methods of payment.
Payment terms between professionals are regulated: unless otherwise stipulated, the payment term is set at the 30th day following the invoice issue date.
The date on which payment is due must be indicated on the invoice, expressed in day, month and year. If payment is to be made in instalments, the date on which the last instalment is to be paid must be indicated.
Late payment penalties
The interest rate for late payment penalties must appear on the invoice. It must be expressed as a daily, monthly or annual rate. The minimum rate is 2.31% (since 01/07/2022).
The amount of the €40 flat-rate indemnity for collection costs in the event of late payment must also be mentioned.
Specific information on VAT
The French General Tax Code (CGI) requires specific information for certain transactions, notably to justify the application of a specific exemption or taxation system.
For example:
- Beneficiaries of the exemption: "VAT not applicable, art. 293 B of the CGI".
- Supplies of goods and services for which tax must be self-assessed by the customer: "VAT reverse charge".
- Invoicing to a foreign customer without French VAT (with or without invoicing of VAT in the customer's country): reference to the text applied (article of the CGI or European Directive).
- Triangular transactions benefiting from simplification measures: reference to the text applied (article of the CGI or European Directive)
Other specific information
If the seller is a tenant-manager of a business or a franchisee, this status must be specified.
Companies in liquidation must include the words "company in liquidation" after their name.
Members of approved management centers and associations must indicate on all their business documents that they are members who accept payment by cheque.
Conservation
Invoices must be kept in duplicate for 10 years. In the event of an audit, invoices must be accessible as soon as possible from the head office or principal place of business.
- The decree of 29/12/1986 requires that originals and copies of invoices be kept for 3 years from the date of sale or provision of services.
- Article 102 B of the LPF requires invoices to be kept for 6 years from the date of issue.
- Article L123-22 of the French Commercial Code requires merchants to keep accounting documents and vouchers for a period of 10 years.
Sanctions
In the event of infringement, both the seller, who is obliged to issue the invoice, and the buyer, who must request it, are liable.
Any breach of the obligation to invoice between professionals is punishable by a maximum fine of €75,000 (natural person) / €375,000 (legal entity). The professional is also liable to exclusion from public contracts (up to 5 years).
Any omission or inaccuracy in invoices required for VAT purposes is subject to a fine of €15 per omission or inaccuracy. The total amount of the fine due in respect of each invoice may not exceed one quarter of the amount that is or should have been mentioned on the invoice.
Failure to comply with the obligation to communicate GTCs is punishable by a fine of up to €15,000 (natural person) / €75,000 (legal entity).
