France’s E-Invoicing Landscape: Compliance Tips for Local Businesses

With digital transformation reshaping industries worldwide, electronic invoicing, which is now becoming mandatory in many parts of the world, including France, offers many benefits for businesses and agencies.

France, in particular, introduced it for Business-to-Government (B2G) transactions, which became legally binding on January 1, 2020. Since then, they have been making moves towards making e-invoicing and e-reporting compliance mandatory for businesses of all sizes.

As the country moves towards fully implementing this directive, businesses need to understand it for successful navigation and implementation.

In today's piece, we explore France's e-invoicing landscape and offer tips to help local businesses stay compliant.

Understanding e-invoicing in France

In France, the government is mandating e-invoicing for domestic B2B and B2G transactions and e-reporting for domestic and international B2C (Business to Customer) transactions. E-reporting and payment information for specific transactions are also mandated for international B2B transactions.

All businesses registered under France's Value Added Tax (VAT) must adhere to this mandate, as outlined in Article 153 of 2020 of French Finance Law.

This means that when e-invoicing for B2B is completely introduced in France, businesses will no longer be allowed to send invoices directly to customers. Instead, they must transmit invoices through a government portal or a private third-party platform.

Invoices will be exchanged using the mandated formats UBL 2.1, UN/CEFACT CII, and Factur-X.

Mandatory Channels for E-invoicing:

Portail Public de Facturation (PPF)
Approved Partner Dématérialization Platform (PDP)
Dématérialising Operators (ODs)

How e-invoicing works in France

Following the new reform, e-invoices must be generated and transmitted through specific channels that meet regulatory standards.

For business-to-government (B2G) sector

All French businesses supplying a public entity must send structured electronic invoices via the national invoicing portal, Chorus Pro.

Presently, if your business cannot send messages electronically via XML, Chorus Pro ( this will be explained shortly) offers a web portal for manually entering invoice data, sending e-invoices, and checking invoice and payment status.

Although this option is less efficient than sending e-invoices directly via a service provider capable of offering a powerful API connection, it can be helpful for smaller suppliers that do not yet have EDI capability.

Chorus Pro serves as the primary platform for overseeing e-invoicing in France. It connects to all authorities nationwide and supports traditional and well-established EDI channels and formats.

While suppliers and public clients can use its services without incurring charges, using it effectively requires a deep understanding of the French administrative context, knowledge of evolving tax regulations, and proficiency in French.

For business-to-business (B2B) sector

By 2026, companies in the B2B sector will have three options for sending electronic invoices and meeting reporting requirements:

Partner Dematerialization Platforms (PDPs)

Similar to the B2G sector, B2Bs can choose to use the services of Partner Dematerialization Platforms (PDP) for e-invoicing and electronic reporting.

In this scenario, the solution provider interfaces with the national platform, Chorus Pro, through its proprietary cloud solution and handles both invoice transmission and mandatory transaction data reporting to the French tax administration.

Dematerialization Operators (ODs)

Companies can also choose the services of Dematerialization Operators (OD). Broadly speaking, they offer functions similar to PDPs. However, these service providers lack government certification and cannot directly issue or receive invoices without using the Public Invoicing Portal (PPF) as an intermediary.

Public Invoicing Portal (PPF)

In addition to overseeing the management of the directory, businesses can use the PPF directly without relying on PDPs or ODs. The PPF can be accessed and utilized manually through a web portal or integrated via API and EDI.

Timeline for the implementation of e-invoicing in France

Before we dive deeper into the requirements for e-invoicing, let’s look at the timeline as agreed in Ordonnance n° 2021-1190 and Ordonnance n° 2014-697.

Beginning in September 2026, businesses of all sizes operating in France will be obliged to comply with the e-invoicing and e-reporting mandates, and all taxpayers must be able to accept and receive e-invoices.
Small taxpayers will be required to comply fully with the e-invoicing and e-reporting mandates from September 1, 2027.

Requirements for e-invoice in France

To comply with e-invoicing regulations in France, businesses must ensure that their e-invoices meet the requirements for sending and receiving invoices.

The following are the requirements for sending e-invoices:

Invoices must be issued in a pre-defined format following specific transmission standards.
Key data in electronic invoices issued in France will be communicated to the authorities in real-time.
E-invoices must be registered and reported on the government's public billing portal (Portail Public De Facturation).
Invoice statuses must be regularly transmitted to the PPF. This act is what is known as invoice lifecycle management.

The following are the requirements for receiving e-invoices:

Businesses subject to VAT must be able to receive electronic invoices in the mandated formats UBL 2.1, UN/CEFACT CII, and Factur-X.
Electronic invoice archiving must be done for all e-invoices.

E- reporting requirements in France

As mentioned earlier, in addition to e-invoicing, businesses in France must electronically report VAT to the tax authorities.

The Direction Générale des Finances Publiques (DGFiP) established this mandate as part of the project to generalize e-invoicing.

E-reporting was introduced simultaneously with the B2B e-invoicing mandate and has the same timeline (end 2026 and end 2027 deadlines).

The information authorities receive via this report allows them to monitor business activities, detect fraud, and streamline tax collection processes.

How e-reporting works

In practice, the Platform de Dématérialization et de Paiement (PDP) ensures the exchange of invoices between suppliers and buyers.

While ensuring the exchange, it automatically sends all the required VAT reporting data to the tax authority via the Plateforme de Paiement et de Facturation (PPF) (e-Reporting).

E-reporting applies to:

Business-to-consumer (B2C) transactions
Business-to-government (B2G) transactions
Cross-border transactions involving VAT-exempt entities

Although e-invoicing isn't mandatory for B2C and cross-border transactions, companies must submit e-reporting files, including specified data points, to the French government platform.

As we said, this report will allow the tax authority to monitor business activities, detect fraud, and streamline tax collection processes.

Depending on the transaction to be reported and the tax regime in which the taxpayer operates, the deadline for electronic reporting is four days after the week's end for standard reporting scheme companies and seven days after the month's end for others.

What is the impact of e-invoicing on businesses in France?

For many businesses in France, the mandatory shift to e-invoicing represents both challenges and opportunities.

Choosing between the PPF platform, dedicated to small businesses, or certified PDPs supporting larger business entities in sending electronic invoices and e-reporting to the tax office is only one of the early steps.

For instance, implementing e-invoicing requires investment in new technology and staff training. Hence, companies may need to upgrade their invoicing systems and ensure their ERP systems are ready for this change.

Businesses also need to understand the new e-invoicing and e-reporting process.

That said, e-invoicing has significant benefits. Automating invoicing processes leads to fewer errors, faster payments, and improved cash flow. Moreover, e-invoicing simplifies VAT reporting and compliance, reducing businesses' administrative burden.

By digitizing their invoicing workflows, companies can also gain real-time insights into their financial operations, helping them make more informed business decisions.

E-invoicing compliance tips for local businesses in France

To ensure compliance with e-invoicing regulations in France, local businesses should consider the following tips:

1. Audit your existing systems

The first step toward compliance for local businesses in France is auditing your company's existing systems. Ask critical questions like: Have you already implemented an electronic invoicing solution? If you haven't, we recommend that you quickly look for a solution that aligns with your size, needs, and organizational structure.

Also, check that the company that your chosen solution provider is a Partner Dematerialization Platform (PDP) approved by the French administration.

If your chosen solution provider has yet to become a Partner Dematerialization Platform (PDP) approved by the French administration, find out their plan for becoming approved and for complying with the requirements, including connection to the public billing portal, invoice formats, archiving arrangements, and data security.

In addition, assess your satisfaction with your existing solution and explore potential alternatives if necessary.

2. Map your customers, suppliers, invoices, and processes

The second tip for compliance is to:

Identify your business stakeholders, including customers, suppliers, internal departments, and external partners.
Evaluate your current invoice management processes for customers and suppliers, considering their size and upcoming e-invoicing requirements.
Determine the annual volume of invoices sent and received and analyze the types of electronic invoice formats and sending channels (paper, PDF, EDI) used by your stakeholders.
Categorize invoices by their nature (B2B, B2C, B2G, national, European, international).

3. Find a suitable platform

Prioritize finding and working with a partner who can help you define the optimal solution for your organization. To help you determine the right partner, they should be able to offer the following:

Process 100% of your invoices.
Offer advanced automation for matching invoices with purchase orders and processing invoices without purchase orders.
Integrate seamlessly with your ERP system(s).
Reduce the number of manual exceptions.
Connect with other e-invoicing operators so suppliers can send invoices from the networks they already use.
Guarantee compliance with e-invoicing rules and tax regulations in each country your company is located.
Provide 100% visibility on your expenses to better manage your cash flow and working capital.
Analyze the data of your accounting processes to improve and automate them continuously.
Correctly process invoices when purchase orders are created in a third-party purchasing system.
Automate the process to identify fraud risks.
Lastly, ensure your chosen partner meets regulatory requirements and your short- and medium-term needs.

4. Prioritize human aspects

Implementing e-invoicing in compliance with France's regulations is not just an IT project but a cross-functional transformation impacting multiple departments, including accounting/finance, sales, and legal. Each department must play a role in adapting to new systems, processes, and legal requirements.

Anticipate training, recruitment, and support needs for a smooth transition to the new system.

5. Seek expert support

Partner with an experienced e-invoicing provider that specializes in guaranteeing compliance with local and international regulations. Storecove, for instance, can assist businesses in navigating the complexities of e-invoicing and e-reporting.

Takeaway: Navigate France’s e-invoicing future seamlessly with Storecove

Implementing e-invoicing may seem complex, but it promises greater efficiency and competitiveness compared to the conventional approach.

To successfully navigate it, businesses must understand and comply with the new law to avoid the penalty involved in the failure to comply.

If you want a seamless transition, you must take specific steps, including auditing your existing systems, finding a suitable partner, and seeking expert support.

In your journey towards a secure and seamless e-invoicing system that complies with France's financial and tax regulations, Storecove can help.
We ensure that companies use the right sending and receiving infrastructure to meet France's complex e-invoicing requirements, giving you the confidence that you are in compliance with tax rules and regulations, no matter where your business operates.

Ready to join thousands of businesses that have already embraced the future of invoicing? Contact us for more information.

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