Changes to the 2024 French Finance Act: A new timeline takes effect
As part of the Europe-wide effort to establish a standard for electronic invoicing, France was long considered a pioneer and model country in its implementation. Although Germany, as a driving force behind the move toward mandatory eInvoicing, played a key role in drafting the guidelines and regulations, France initially outpaced all other European countries in preparing and finalizing those regulations. That changed completely in the second half of 2023, when plans to postpone the introduction of eInvoicing in France became known. But don’t worry: postponed is not canceled. The introduction of eInvoicing in France is certain—and important.
Updated: Timeline for the rollout of eInvoicing in France
These plans have now been rescheduled. The current status of implementation and the new plans are as follows:
As a TRAFFIQX® expert on CTC (Continuous Transaction Control) systems, Lars explains below the benefits of this postponement, who the French regulations actually apply to, and how France compares to other European countries in terms of the practical implementation of eInvoicing.
France is on the cusp of significant changes in its financial legislation. The year 2024 marks the introduction of far-reaching adjustments to French financial legislation that will have a considerable impact on the country’s economic landscape. In this article, we take a look at the key elements of these changes and clarify the new timeline planned for their implementation.
eReporting – a key aspect of the legislative changes in France
In France, the scope for sending and receiving electronic invoices is defined as follows:
- For suppliers: Tax-relevant services provided to another taxable business fall under this regulation, provided that both the invoice issuer and the invoice receiver are businesses registered for VAT in France.
- For receivers: They receive status information regarding incoming and outgoing invoices.
Additionally, France is introducing so-called eReporting, which covers the following aspects:
- Payment information
- Cross-border deliveries and purchases
- B2C transactions (transactions with end consumers)
eReporting applies when businesses based in France provide goods or services to businesses abroad (cross-border B2B transactions) or to non-business entities within France (domestic B2C transactions), or when businesses that are registered for VAT in France but not based there generate taxable transactions in France.
eInvoicing – the second key aspect of France’s eInvoicing strategy
The amendments to the French Finance Act of 2024 aim to modernize France’s financial landscape and adapt it to the ever-changing global economic conditions.
Among the most important eInvoicing-specific changes in French financial legislation are:
Requirement to issue electronic invoices starting in September 2026 for large enterprises and medium-sized enterprises (a later date may be set by decree, which must not be later than December 1, 2026),
Requirement to issue electronic invoices starting in September 2027 for micro-enterprises, small, and medium-sized enterprises (a later date may be set by decree, which must not be later than December 1, 2027),
Requirement for all businesses to be receivers of electronic invoices starting in September 2026 (a decree may set a later date, which must not be later than December 1, 2026).
The Impact of the Digitization of Tax and Invoice Exchange Processes on the French Economy
The changes to the French Finance Act will be of great significance for both citizens and businesses. While tax reforms can lead to a fairer distribution of the tax burden, the regulation of cryptocurrencies will open up new business opportunities and contribute to financial security. At the same time, incentives for sustainable investment will help France achieve its climate goals and promote a greener future.
Our view: The changes to the French Finance Act of 2024 are a bold step toward a modernized and resilient economy. With the Setting of the new timeline, citizens and businesses can prepare for the upcoming changes and fully leverage the benefits of the new regulations. It remains exciting to observe how these changes will shape France’s economic landscape in the coming years.
Postponed is not canceled—quite the contrary: Get ready for eInvoicing in France now!
But one thing is certain: Anyone who wants to continue doing business with French customers, suppliers, and partners should familiarize themselves as soon as possible with the “new” conditions—which, admittedly, are not entirely straightforward to implement. Despite the current delay in the original timeline. Reach out to us—we are the right point of contact for all questions regarding eInvoicing requirements in Germany and internationally.
Because even if eInvoicing and e-reporting are now launching a bit later: There is no question that digital exchange of invoicing and tax data for B2B transactions is coming. And that is just as certain as it is important.
Secure your consultation now!
Want to learn more? Schedule your free consultation with our expert Lars Becher, Key Account Manager and Subject Matter Expert for e-invoicing and CTC within the TRAFFIQX® network.
Not a fan of online meetings?
Give him a call: +49 (0)6359 – 9 37 90
or drop him a line at: lars.becher@b4value.net