For some time now, a new jargon has been making its appearance: PDP, PPF, OD, Electronic Invoice... What was just a sound, is intensifying as the entry into force of new obligations with the Electronic Invoicing reform approaches.
Exco helps you understand and prepare for the reform.
What is electronic invoicing?
It's an invoice that has been issued, transmitted and received in a structured, standardized electronic format, enabling it to be processed automatically. An electronic invoice, or e-bill, is not a dematerialized invoice or an invoice sent by e-mail. Scanning a paper invoice does not transform it into an electronic invoice.
Who's concerned?
All French professionals, or those carrying out operations in France, subject to VAT will have to comply with the reform. This applies regardless of the legal form of their business (company, sole proprietorship). If you file VAT returns, you're affected.
Furthermore, if you benefit from a system that allows you not to charge or declare VAT, by not exceeding certain thresholds for example, you will have to comply with the same obligations. This is the case for autoentrepreneurs.
What are these new obligations?
Two new obligations will be introduced:E-Invoicing andE-Reporting.
E-Invoicing concerns all transactions carried out between professionals in France. It involves sending an electronic invoice from a dedicated platform. This platform then sends the invoice electronically to the business customer's platform, as well as to the tax authorities. Once the reform comes into force, it will be impossible to send invoices by e-mail or post. Invoices will have to be sent via authorized platforms.
E-Reporting concerns all sales transactions with private individuals, as well as purchases and sales with professionals established outside France. It involves sending the tax authorities sales and receipts data relating to these transactions.
Example of a craftsman: For all business customers established in France, the craftsman will have to transmit electronic invoices via a platform. For his private customers, the same craftsman will have to transmit the related sales data, at least three times more frequently than the current VAT declaration deadlines. Finally, he will have to provide information on receipts linked to these sales.
Finally, for a retailer selling exclusively to private individuals and making purchases outside France, the manager will have to transmit the cash register data found on the daily Z. He will also have to provide information on purchases made outside France via the platform.
Who are the new players?
New players are emerging in this new environment. We'll give you a few details here, to help you understand the main terminologies of this new language.
The PPF, Portail Public de Facturation, will be the government platform. It will be in charge of the business directory, which will provide information on the platform used by each company or individual entrepreneur. It will also transmit all data to the tax authorities.
PDPs( Plateformes de Dématérialisation Partenaires) are government-approved and certified platforms. They will be responsible for transmitting all data to the PPF, and for ensuring that electronic invoices are correctly transmitted to the platform chosen by the recipient of the electronic invoice.
ODs, or Opérateurs de Dématérialisation, are service providers on the market who are not government-certified. For example, they may be billing software that can create an electronic invoice, but not transmit it. To do so, it must be connected to a PDP or PPF.
What will your daily life be like tomorrow?
First and foremost, this reform will enable you to obtain invoices from your French suppliers in real time, centralized in a single space. No more wasting time looking for missing invoices! However, you'll still have to transmit your invoices and information on an ongoing basis. It will therefore be impossible to put off administrative tasks and wait for the VAT return date as the only deadline. That's why it's vital to plan your reorganization to cope with this new timetable, and in particular your choice of partner.
Exco can help you identify the issues and specificities linked to your core business and day-to-day operations. The aim is not only to transmit the data required by the tax authorities, but also, and above all, to take full advantage of these new obligations. In this way, you'll be able to better manage your company with reliable, ongoing business data.
To date, the new timetable for electronic invoicing has been set out in the Finance Act 2024. All companies will be required to receive electronic invoices by September1, 2026. The obligation to issue invoices will apply to large and mid-sized companies from September1, 2026, and to very small businesses from September1, 2027.
Don't wait until you have to comply with the reform. Get in touch with us now to anticipate these changes as effectively as possible. Putting in place the right tools and the right organization will ensure a smooth and controlled transition.
