Electronic Invoicing Reform in France
A newbie’s note for the project experience in my workplace
Background of the Reform
The e-invoicing reform in France, which is also known as “Facture Dématérialisée,” is a recent policy aimed at promoting electronic invoicing and reporting among businesses. Here are some key points about the reform:
- The reform was introduced by Article 153 of the Finance Act №2019–14 for 2020 and has been gradually introduced since then. The reform aims to help reduce paper usage, improve invoice accuracy, and facilitate VAT reporting for businesses.
- The reform requires businesses to issue and receive invoices in electronic format for transactions between VAT taxpayers. The reform applies to both B2B (business-to-business) and B2G (business-to-government) transactions.
- The reform also requires businesses to transmit their invoicing data to tax authorities to create pre-filled VAT returns. This aims to improve VAT compliance and reduce errors in tax reporting.
- Private platforms registered as “partner platforms” will coexist with a public platform called Super Chorus Pro to enable the issuance of invoices between VAT taxpayers in a dematerialized manner and transmit the e-reporting data to the tax authorities.
- Starting from January 1, 2026, paper invoices will no longer be permitted for all B2B and B2G transactions. The PDF format will gradually disappear in favor of structured formats.
- The use of the standardized e-invoice format (called PAF) is mandatory under the reform. The PAF format is designed to ensure interoperability and facilitate the exchange of electronic invoices across different systems and platforms.
Is the Reform related to ESG?
While the e-invoice reform in France is not directly related to ESG (environmental, social, and governance) principles, it could indirectly contribute to sustainable practices and align with ESG goals. Here are a few potential ways in which the reform could relate to ESG:
- Environmental: By reducing paper usage, the e-invoice reform could help reduce deforestation, greenhouse gas emissions, and other negative environmental impacts associated with paper production and transportation.
- Social: The e-invoice reform could help create a more level playing field for businesses by reducing the administrative burden and costs associated with paper invoicing and VAT reporting. This could support small and medium-sized enterprises (SMEs) and help promote a more inclusive economy.
- Governance: The e-invoice reform could help improve transparency and accountability in tax reporting by facilitating the accurate and timely reporting of VAT data. This could help prevent tax fraud and improve governance.
Overall, while the e-invoice reform in France is not directly linked to ESG, it is part of a broader trend toward digitization and sustainable practices in business and government. By promoting electronic invoicing and reporting, the reform could indirectly support ESG principles related to environmental protection, social inclusion, and good governance.
The information provided the difference between a start-up and a target:
In general, established companies or “targets” may have negotiated pricing arrangements with their customers, which could include discounts or other promotions. As such, they may need to include this information on their e-invoices to accurately reflect the agreed-upon pricing and terms of the transaction. Additionally, since established companies likely have more experience and resources, they may be better equipped to handle the administrative tasks associated with e-invoicing and VAT reporting, and can ensure that they are providing all the necessary information on their invoices.
On the other hand, start-ups may be more focused on attracting and retaining customers, and may therefore need to use discounts or promotions to incentivize purchases. However, since they may be less experienced with e-invoicing and VAT reporting, they may not be aware of all the necessary information to include on their invoices. As such, they may need to provide more information, such as discounts or other promotions, to build trust with their customers and ensure transparency in their pricing.
Penalties: What happens if a company doesn’t comply?
E-invoicing: €15 per invoice, capped at €15,000 per year
E-reporting: €250 per transmission, capped at €45,000 per year
Complementary:
VAT
VAT stands for Value Added Tax. It is a type of consumption tax that is applied to the value added at each stage of production and distribution of goods and services. VAT is a tax that is generally imposed on the end consumer of a good or service, but it is collected at each stage of production and distribution.
In many countries, including the European Union and many other regions, VAT is a major source of revenue for governments. Businesses that are registered for VAT are required to collect and remit VAT to the government based on the amount of VAT added to the value of their goods or services.
The VAT rate may vary depending on the country or region and the type of goods or services being taxed. Some goods and services may be exempt from VAT, such as basic foodstuffs or healthcare services.
VAT is generally designed to be a broad-based tax that is applied to a wide range of goods and services. It is typically considered to be a more efficient and less distortionary tax than other types of consumption taxes, such as sales taxes or excise taxes, because it applies to the value added at each stage of production and distribution, rather than just the final sale.
Overall, VAT is an important tax that is used by many governments to fund public services and programs. Businesses that are registered for VAT must comply with the relevant tax laws and regulations to accurately collect and remit VAT to the government.
TSEs
TSE stands for “Taxable Economic Entity” in French, which refers to a group of entities that have financial and organizational ties, and are therefore subject to VAT as a single entity. In France, TSEs are subject to specific rules for VAT reporting and payment, and the thresholds for TSEs to issue electronic invoices are generally higher than those for individual entities.
ETI
ETI stands for “Entreprise de Taille Intermédiaire” in French, which translates to “Intermediate Sized Company” in English. In France, ETI refers to companies that have between 250 and 5,000 employees, and annual revenues of up to 1.5 billion euros. ETIs are considered to be a vital part of the French economy, as they are often the main drivers of job creation and innovation.
SME
SME stands for “Small and Medium-sized Enterprises”. The definition of SMEs can vary depending on the country and industry, but generally, they are defined as businesses that have fewer than 250 employees and annual revenues of up to 50 million euros. SMEs are often considered to be the backbone of the economy, as they make up the majority of businesses in many countries and play an important role in job creation, innovation, and economic growth.
VSEs
VSEs stands for “Very Small Enterprises”. These are typically small businesses with fewer than 10 employees and relatively low annual revenues. They are often considered the smallest segment of the business world and face unique challenges in terms of financing, competition, and regulatory compliance.
Useful reference URLs:
中文版筆記
法國電子發票改革背景
2019年財政法案第153條為2020年引入了逐步實施的電子發票義務，適用於納稅人之間（B2B）的交易，以及將發票數據傳輸給稅務機關以便創建預先填寫的增值稅報告。
2021年頒布的第2021–1190號法令採用了“Y”模式，也稱為“墨西哥”模式。註冊為“合作夥伴平台”的私人平台將與公共平台（即Super Chorus Pro）共存，以電子方式發出增值稅納稅人之間的發票並將電子報告數據傳輸給稅務機關。從2026年1月1日起，所有B2B和B2G交易將不再允許使用紙質發票。PDF格式將逐漸消失，取而代之的是結構化格式。
PAF仍然是強制性的。
總之，這項改革旨在促進法國的稅務現代化，並促進數字轉型，以減少使用紙張，並簡化繳納稅款的過程。這與環境、社會和管治（ESG）的問題有關，因為這些問題對政府和企業進行全面的數字轉型和更好的數據管理提出了挑戰，以實現可持續的經濟和社會發展。
改革跟ESG有關嗎?
這項改革與環境、社會和管治（ESG）的問題有關。這是因為ESG問題對於政府和企業進行全面的數字轉型和更好的數據管理提出了挑戰，以實現可持續的經濟和社會發展。
隨著電子發票改革的實施，法國政府致力於促進稅務現代化和促進數字轉型。這可以減少紙張的使用，從而有助於減少資源浪費和環境污染。此外，電子發票還可以幫助減少欺詐和增加透明度，從而提高社會的管治水平。
總的來說，這項改革反映了法國政府在實現可持續發展方面的承諾，並有助於推動綠色轉型和數字轉型，以實現更加可持續的經濟和社會發展。
處罰：如果公司不遵守規定會怎樣？
電子發票：每張發票 15 歐元，每年上限為 15,000 歐元
電子報告：每次傳輸 250 歐元，每年上限為 45,000 歐元
補充說明
VAT
VAT代表增值稅。它是一種消費稅，適用於商品和服務的生產和分配的每個階段所增加的價值。增值稅是一種通常徵收於商品或服務的最終消費者的稅，但它是在生產和分配的每個階段收集和繳納。
在許多國家，包括歐盟和許多其他地區，增值稅是政府的主要收入來源。註冊增值稅的企業必須根據其商品或服務增加的增值稅金額向政府收集和繳納增值稅。
增值稅率可能因國家或地區以及徵稅的商品或服務類型而異。有些商品和服務可能免徵增值稅，例如基本食品或醫療服務。
增值稅通常被設計成是一種廣泛的稅，適用於各種商品和服務。它通常被認為是比其他消費稅更有效率且不失真的稅，例如銷售稅或特種稅，因為它適用於生產和分配的每個階段所增加的價值，而不僅僅是最終銷售。
總體而言，增值稅是許多政府用來資助公共服務和計劃的重要稅收。註冊增值稅的企業必須遵守相關的稅法和法規，以便準確地向政府收集和繳納增值稅。
TSEs
TSE 是法文「Taxable Economic Entity」的縮寫，指的是一群
有財務和組織關聯的實體
因此作為單一實體而被視為增值稅(VAT)的納稅人。在法國，TSE 需要遵守特定的增值稅申報(VAT reporting)和付款規則，且 TSE 發出電子發票的門檻(thresholds)通常比個體實體高。
ETI
ETI 是法文「Entreprise de Taille Intermédiaire」的縮寫，翻譯為英文是「Intermediate Sized Company」，翻譯為中文是「中型企業」。在法國，ETI 指的是：
有 250 到 5,000 名員工、
年營收高達 15 億歐元的公司。
ETI 被視為法國經濟的重要組成部分，因為它們通常是創造就業機會和推動創新的主要驅動力。
SME
SME 是「Small and Medium-sized Enterprises」的縮寫，翻譯為中文是「中小型企業」。根據國家和產業不同，SME 的定義也有所不同，但通常被定義為：
擁有不到 250 名員工、
年營收不超過 5000 萬歐元的企業。
SME 經常被認為是經濟的支柱，因為它們在許多國家中佔大多數企業，對於創造就業機會、促進創新和經濟增長扮演著重要角色。
VSEs
VSEs 為「Very Small Enterprises」的縮寫，翻譯為中文是「小型企業」。通常是指
擁有不到 10 名員工和
相對較低年收入的小企業。
它們通常被認為是商業世界中最小的部分，面臨融資、競爭和法規合規等方面的獨特挑戰。