A digital revolution for the accounting of French companies

From September 2026, electronic invoicing will become mandatory for all businesses established in France. This digital transformation, long anticipated and delayed several times, will radically change the way businesses exchange business documents and report their transactions. Far from being a simple change of format, this reform is a complete overhaul of the inter-company billing system and relationships with the French tax administration.

What is mandatory electronic invoicing?

Definition and principle

Electronic invoicing goes far beyond simply sending invoices in PDF by email. It is a complete dematerialization process where invoices are created, transmitted, received and processed in structured electronic format. These documents will necessarily circulate via certified dematerialization platforms, ensuring their authenticity and compliance.

Electronic invoices must respect standardized formats (XML, Factur-X) allowing their automated processing, although the PDF format remains acceptable if it is accompanied by structured data. The objective is to create an ecosystem where billing data flows smoothly and securely between business and tax administration information systems.

The French model: a Y system

The French electronic invoicing model is based on a so-called “Y-shaped” system comprising:

1. The Public Invoicing Portal (PPF) : managed by the State, successor to Chorus Pro, which will serve as a central hub
2. Partner Dematerialization Platforms (PDP) : private operators certified by the administration

In this system, each company will be able to choose:

• Or to use the PPF directly to issue and receive invoices
• Or go through a PDP, which will generally offer value-added services.

The crucial point is that all electronic invoices, even those transiting between PDPs, will be transmitted to the tax authorities via the PPF.

The precise deployment schedule

The implementation of this obligation will follow a phased schedule, now set by the DGFIP:

For the receipt of electronic invoices

• September 1, 2026 : All businesses, regardless of size, should be able to receive electronic invoices.

For the issuance of electronic invoices

• September 1, 2026 : Large companies (with more than 5000 employees) and ETI (medium-sized companies) will have to issue their invoices in electronic format.
• January 1, 2027 : SMEs will join the mandatory issuance system.
• July 1, 2027 : VSEs and micro-enterprises will be the last to have to comply with the emission obligation.

For e-reporting

The same deadlines will apply to e-reporting obligations, which will concern transactions not subject to electronic invoicing.

The double mechanism: e-invoicing and e-reporting

The reform is based on two complementary pillars:

1. E-invoicing (electronic invoicing)

This is the obligation to issue and receive invoices in electronic form for all domestic B2B transactions (between French companies subject to VAT).

The process will work like this:

1. The issuing company generates an electronic invoice
2. This invoice is sent via the PPF or a PDP
3. The recipient receives it via their chosen platform.
4. The tax authority automatically receives the data for this transaction

Invoices must contain all current mandatory legal information, but also standardized additional data to facilitate their automated processing.

2. E-reporting (data transmission)

E-reporting completes the system by requiring companies to report electronically to the tax authorities, via the PPF or a PDP:

• International B2B transactions (with foreign customers or suppliers)
• B2C transactions (sales to individuals)
• Some transactions not subject to billing

This transmission of information will take place periodically (monthly in most cases) and will concern aggregated data on these operations.

The concrete consequences for businesses

Operational and technical impacts

1. Adaptation of information systems

Businesses will have to adapt their billing and accounting software to:

• Generate invoices in required electronic formats
• Connect to dematerialization platforms
• Automatically integrate received electronic invoices
• Extracting the data required for e-reporting

This adaptation may require specific developments or the acquisition of new software solutions.

2. Choosing a platform

Each business will need to determine if they will use:

• The Public Invoicing Portal (free solution but with limited functionalities)
• A Partner Dematerialization Platform (paid service but offering advanced functionalities)

This choice will depend on the volume of invoices processed, the specific needs and the resources available.

3. Transforming internal processes

Accounting procedures will need to be redesigned:

• Phased out of manual entry
• New invoice validation workflow
• Electronic archiving in accordance with regulations
• Appropriate control and follow-up processes

Financial impacts

Predictable costs

• Initial investments: software adaptation, staff training
• Recurring costs: PDP subscriptions, maintenance of solutions

Expected savings

• Reduced printing, mailing, and physical storage costs
• Reduction in errors and processing time
• Accelerating payment terms
• Improving traceability and follow-up

According to DGFIP estimates, the long-term savings should largely compensate for initial investments, with an average gain estimated between 4 and 12 euros per invoice.

Tax and reporting consequences

Simplification of declarations

Ultimately, the system aims to pre-fill VAT returns using the data collected, thus simplifying the reporting obligations of businesses.

Strengthening fiscal controls

The tax authority will have real-time information on transactions, allowing it to:

• Detect anomalies more quickly
• Targeting controls more effectively
• Combating VAT fraud

Special situations and exceptions

International invoices

French companies continue to issue invoices internationally in the formats accepted by their foreign customers, but will have to report these transactions via e-reporting.

Specific operations

Some transactions are subject to specific provisions:

• Simplified invoices
• Periodic or summary invoices
• Auto-invoicing
• Billing mandates

Special sectors

Adaptations are planned for certain sectors such as:

• The liberal professions
• The medical sector
• Businesses subject to defence secrecy

How to prepare in concrete terms?

In the short term (2023-2024)

1. Define a compliance strategy
2. Select the appropriate technical solutions
3. Plan the necessary investments
4. Start adapting information systems

Approaching the deadline (2025-2026)

1. Test the new procedures
2. Train accounting and sales teams
3. Communicating with business partners
4. Conduct compliance tests

Conclusion: an inevitable transformation to be anticipated

Mandatory electronic invoicing represents a major turning point for all French businesses. Beyond regulatory compliance, this reform will profoundly transform accounting processes and inter-company commercial relationships.

Businesses that anticipate this transition will not only be able to avoid haste as deadlines approach, but also seize this opportunity to modernize their processes, reduce administrative costs, and gain efficiency. Conversely, those who wait until the last moment may face technical and organizational difficulties.

Electronic invoicing is not only a legal obligation, it is also a lever for digital transformation that is part of the overall modernization of the French economy and which, in the long term, should benefit all economic players.

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