Comprehensive guide to e-invoicing reform
Electronic invoicing and electronic reporting have recently undergone major reform, affecting companies of all sizes and in all sectors of activity. The aim of this legislative change is to improve the efficiency of invoicing and reporting processes, while reducing tax fraud and promoting financial transparency. In this article, we will review the most important information about this reform of e-invoicing and e-reporting, to help businesses comply with the new requirements.
What is e-invoicing reform ?
The reform of e-invoicing and e-reporting involves specific legal obligations. Companies are required to issue electronic invoices that comply with the format and specifications defined by the competent authorities. They must also archive these electronic invoices for a specified period. As far as electronic reporting is concerned, companies must regularly submit electronic declarations containing the financial information required by the tax authorities.
What is e-invoicing ?
E-invoicing is electronic invoicing. It refers to the process of creating, sending, receiving and processing invoices electronically. E-invoicing covers B2B exchanges between taxable persons established in France.
What about e-reporting ?
E-reporting refers to the transmission of data to the tax authorities. This concerns all data not covered by e-invoicing, i.e. :
- B2C transactions
- International B2B transactions
- Payment data relating to the provision of services
E-reporting speeds up the declaration process, reduces errors and facilitates compliance with current regulations.
What are the advantages of eletronic invoicing ?
Electronic invoicing has a number of advantages for businesses, including :
Reducing the cost of printing, mailing and storing paper invoices.
Protecting the environment : the more companies use paperless invoicing, the more they will be helping to save forests.
It also enables VAT returns to be pre-filled, speeding up the invoicing process, improving data accuracy and making it easier to track payments.
As for electronic reporting, it simplifies the transmission of financial information to the tax authorities, reduces the risk of errors and penalties, and promotes better management of financial data within the company.
Key dates to remember :
The players involved in electronic invoiving :
- Public Invoicing Portal (PPF) : based on CHORUS PRO and compatible with it as soon as possible.
- Partner dematerialisation platforms (PDP) : generate invoices. PDPs will be able to transform the format of the invoice drawn up by the issuer to convert it into a format suitable for its customer, and transmit it to the recipient of the invoice. The list of PDPs is not yet known.
- Dematerialisation operators (OD) : CEREALOG. Dematerialisation operators may be connected to the PPF or a PDP to transmit invoices.
- Tax authorities : they will process the data sent to them in order to automate and pre-fill VAT returns.
CEREALOG, a trusted player at the heart of the dematerialisation process :
- Circuit A : between two players using the Public Billing Portal (PPF) directly.
- Circuit B1 / Circuit B2 : between two players, one using the Public Billing Portal (PPF) and the other using a Partner Dematerialisation Platform (PDP).
- Circuit C : between two players using Partner Electronic Platforms (PDP).
For players using the Public Billing Portal (PPF) : billing data will be transmitted by the PPF to the tax authorities.
Regardless of the channel adopted, the PPF will always be responsible for centralising the billing data to be sent to the tax authorities.
Impact of non-compliance with this reform :
Failure to comply with the e-invoicing and e-reporting reform can have serious consequences for businesses. These can include fines and financial penalties, delays in payment processing, disruption to business relationships with partners and a negative reputation. It is therefore essential to comply with the new requirements to avoid these potential problems.
The reform of electronic invoicing and reporting represents an important step in the modernisation of companies’ financial processes. By complying with the new legal requirements, companies can reap a number of benefits, such as cost savings, improved operational efficiency and greater transparency. It is essential for companies of all sizes and in all sectors to familiarise themselves with the specifics of the reform and to take the necessary steps to ensure a smooth transition to electronic e-invoicing and e-reporting.