France e-invoicing and e-reporting 2023 - information package

[Benoit1]

2024 Update !

On 29 December 2023, the French authorities published the legislation on the 2024 budget, which included the updated timelines for the e-invoicing and e-reporting mandate.

Following this legislation, the entry into force of B2B e-invoicing obligation is as following:

• 1 September 2026: obligation to receive e-invoices for all taxpayers and issuing B2B e-invoicing becomes mandatory for large enterprises (‘GE’) and intermediate-sized enterprises (‘ETI’);


• 1 September 2027: issuing B2B e-invoicing becomes mandatory for mid-sized (‘PME’) and micro companies (‘TPE’).

Please note that both dates can be postponed by the government with a maximum of 3 months via a decree (i.e. 1 December 2026 and 2027 respectively).

 

2023 Update : A new NEW timeline is under approval

(to be confirmed before end of the year 2023)

2 amendments could, after approval, be incorporated to the 2024 Finance Bill. In case the French Parliament agrees with the 1st amendment, the timetable will shift as follows:

• July 2025 all companies are obliged to receive e-invoices;


• July 2025 large companies are obliged to issue e-invoices (instead of September 2026);


• September 2026 medium sized companies are obliged to issue e-invoices; and


• September 2027 small businesses (SME/VSE) are obliged to issue e-invoices.

The final dates shall be known at the end of December 2023.

https://www.senat.fr/amendements/2023-2024/127/Amdt_I-208.html

 

Pilot Program with the public authorities

A new call for pilot application will take place in the future, but no timeline has been yet communicated -> this implies participants can reconsider their involvement.

Of course, SAP is strongly committed and willing to candidate again as a pilot team leader.

 

The concept of the pilot program has been extended, on a voluntary basis the participation can take place within these 3 projects:

• Project 1 – Jointly create the support system for PPF (public platform) users (this means participation in workshops to improve documentation content)


• Project 2 - Conduct user journey-based workshops (ie: Visualization of a few transactions based on patterned user paths)


• Project 3 – Portal testing and connection to PPF

 

In France, new requirements about e-invoicing and e-reporting will take place from 2023 to 2025.

This blog gives a short overview of these new requirements and provides initial inputs about SAP solution.

 

• All companies will need to be able to receive invoices in electronic format as of January 1, 2023.


• It will also be imposed, depending on  businesses size, to issue invoices electronically , in addition to some data to the tax administration,  gradually between 2023 and 2025.


• In addition to e-invoicing, the status of the invoice  and also the payment status, will need to be transmitted.


• e-reporting will be required for B2C and International B2B processes, where some data will be send to the tax administration even if they do not originate from an electronic invoice.

 

With e-invoicing France will follow a “Y” schema for B2B domestic invoices.

• Invoices are sent to private platforms or directly to public platform « Chorus Pro »


• Invoices and invoicing data are sent from Chorus Pro to Tax Authorities

e-invoicing (Source : AIFE)

 

 

With e-reporting, invoicing data are sent to tax authorities without transfer to customer :

e-reporting (Source : AIFE)

 

 

SAP solution to cover these requirements is SAP Document Compliance.

SAP Document Compliance

 

SAP Document Compliance is a global, standard solution to address local regulations for the exchange of electronic documents with tax authorities or business partners.

 

Framework feature overview is :

• Comprehensive operations and monitoring thanks to a central “cockpit” and UI-Navigation to business process


• Full process automation with communication and error handling


• End-to-end processes via flexible configurations and predefined actions throughout all statuses


• Document storage and archiving


• Process Auditing with full electronic document history


• SAP Business Process Integrations

 

SAP Document Compliance – PaaS :

• The PaaS solution provides country-specific pre-configured content on SAP Document Compliance, on-premise edition and SAP Business Technology Platform that can be deployed out-of-the-box to manage e-invoices and real-time reporting requirements. Example : Three corners model for Italy and Sdl.

 

SAP Document Compliance – SaaS :

• SAP Document Compliance, cloud edition provides a ready-to-use end-to-end integration that allows to send and receive fully compliant invoices with no communication flows to be deployed/maintained by customers. Example : Four Corners model for Peppol standard.

 

As a conclusion, SAP is ready for next steps :

• The various formats expected will be described in the external specifications of the public platform, a first version of which will be released at the end of September 2021.


• A ratification bill is expected to be submitted to Parliament by the end of December 2021


• Design based on SAP existing solution can start, please stay tuned !