What are the legal requirements for electronic invoicing? [+ White Paper]

Should you switch to electronic invoicing?

Answering this question involves considering two parameters: the benefits for organisations, and the relevant legislation.

It's on the latter point that we'll be focusing, since French law is tending to make electronic invoicing increasingly compulsory.

Which companies are affected? What does this mean in terms of document compliance? Is it necessary to use specific software?

These are just some of the questions we'll be answering.

[Bonus] What are the real benefits of an invoicing tool for businesses? And above all, how do you choose the one best suited to your organisation and your need to dematerialise invoices? Find the answers in our downloadable White Paper.

See all software Billing and Invoicing

Electronic invoicing: definition

What is an electronic invoice?

An electronic invoice is similar to a standard paper invoice, except that it is edited, issued and received in electronic format (Word, PDF, etc.).

☝️ Electronic invoices have the same evidential value as paper invoices. Provided that its authenticity, legibility and integrity are guaranteed.

What are the advantages?

As we shall see, the government's plan to make electronic invoices widely available is primarily designed to combat VAT fraud.

However, there are also benefits for businesses:

Savings

Electronic invoices cost less than paper invoices: less than €1, compared with more than €10 for a paper invoice, according to Vie publique!

These savings are all the more obvious when you consider the costs associated with processing the invoice itself (paper, postage, etc.), as well as the cost of storing the invoice.), but also the cost of storing paper documents.

Better management and productivity gains

The automation made possible by invoicing software ensures better monitoring, particularly of unpaid invoices. As a result, you can reduce the number of disputes and improve productivity and efficiency by concentrating on higher added-value tasks.

What's more, documents remain more easily accessible if they are stored in the cloud, making it harder for them to be lost or destroyed.

Increased customer satisfaction

Finally, it's worth noting that most customers appreciate invoices issued electronically, because they no longer receive paper documents that need to be archived or digitised so that they can be integrated into their own systems.

What's more, the better you manage your invoicing, the better the image you'll convey of your company.

The decree on electronic invoicing

Is electronic invoicing compulsory for businesses?

No. In fact, it is becoming more widespread, as the government sees it as a way of combating tax fraud in relation to VAT declarations.

That's why a decree on the development of electronic invoicing has been put in place, to lay down rules for public procurement.

Consequences: since 2020, any company responding to a call for tenders from public procurement markets (State, local authorities and public establishments) has been required to use electronic invoicing.

💡 To do this, the organisations concerned manage their invoicing via the Chorus Pro public platform.

Electronic invoicing compulsory in 2026 for B2B activities

Another regulation to consider: by 2025, the government wants to make electronic invoicing the general rule for business-to-business activities. This is one of the projects set out in the 2020 Finance Act, and it will come into force in different stages:

• 2023:
  • all businesses concerned will be obliged to accept invoices in electronic format, whatever their size;
  • Large companies will be required to issue electronic invoices.
• 2024: the issuing of electronic invoices will be made compulsory for small and medium-sized businesses.
• 2025: SMEs and VSEs will be required to issue invoices electronically.

ℹ️ Updated on 8 January 2024: the deadline has been extended to 2026! Read our expert article to help you prepare. What's important to remember?

• The general introduction of electronic invoicing and e-reporting has been postponed:
  • 1 September 2026 for large companies and SMEs,
  • 1 September 2027 for VSEs and SMEs.
• The aim of the reform is to simplify VAT reporting obligations, improve the fight against fraud and increase real-time knowledge of the business economy. It is expected to save SMEs €4.5 billion a year.
• Don't delay! Businesses are encouraged to start preparing for the transition to electronic invoicing now, taking into account the impact on their processes and tools.

How do you create a compliant electronic invoice?

Guarantee the authenticity, legibility and integrity of the invoice

It is perfectly possible to create an invoice on paper and scan it for transmission in electronic format. Its evidential value (it can be used as proof) is then guaranteed because it is initially a paper document.

However, if you issue your invoice electronically, you must comply with a number of obligations in order to ensure :

• the authenticity of its origin, in other words the identity of the issuer,
• its legibility, from issue to storage,
• the integrity of its content, i.e. the fact that it cannot be altered.

There are several ways of guaranteeing the above three aspects:

• the use of electronic signatures
• the use of EDI(Electronic Data Interchange), corresponding to the standards set out in the General Tax Code,
• Reliable Audit Trail: this consists of deploying a permanent, documented control system within the company (proof of payment, quotes, purchase orders, etc.).

Include all the compulsory information

To be valid, an electronic invoice must include a certain number of details, just like a paper invoice:

• the date the document was issued
• the invoice number
• the date of the sale or service,
• the identity of the purchaser (name, address and delivery address if different),
• the identity of the seller or service provider (name and address of registered office), with :
  • for a sole trader: surname, first name and business name,
  • for a company: company name, Siren number, NAF code, legal form and amount of capital,
  • for a trader: RCS registration number and town of the registry office,
  • for a craftsman: Siren number and Trade Register number, and department of registration,
• individual VAT identification number,
• a description of the product or service and details of its quantity and price,
• the unit price or hourly rate excluding VAT, as well as any surcharges,
• the VAT rate legally applicable, the amount of VAT due, any discount and the total amounts to be paid excluding and including VAT,
• the due date for payment, with any :
  • the discount terms for early payment,
  • the rate of late payment penalties payable if payment is not received by the due date.

Compliance with invoice retention rules

Finally, electronic invoices must comply with certain document retention requirements:

• Electronic invoices must be kept in the same format for 3 years . Then, for the following 3 years, they must be stored in another format of your choice (electronic or paper, for example).
  
  

• If the authenticity of the invoice is guaranteed by the electronic signature, then keep it in its original format for 6 years .
  
  

• Finally, for accounting purposes, invoices must be kept for 10 years .

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[White Paper] Fed up with Excel? Why and how to choose invoicing software

Faced with legal obligations, the widespread use of electronic invoicing seems inevitable in the years to come.

If you want to take this step, you'll probably need to opt for invoicing software.

You are now familiar with the advantages and specific features of electronic invoicing, as well as the legal framework in which it operates.

If you're planning to start using electronic invoicing, you should bear in mind that this is a transitional phase. So it's a good idea to let your customers know about the forthcoming changes, so they don't get surprised when they no longer receive a paper document.

At the same time, we recommend that you communicate and educate the staff affected. In this way, you'll remove any obstacles and provide your teams with the support they need as your company embarks on its digital transformation.