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 organizations, and the relevant legislation.

We'll be focusing on the latter, since French law is moving increasingly towards mandatory electronic invoicing.

Which companies are concerned? 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 companies? And above all, how do you choose the one best suited to your organization and your invoice dematerialization needs? Find the answers in our downloadable White Paper.

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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 probative value as paper invoices. Provided its authenticity, legibility and integrity are guaranteed.

What are the advantages?

As we shall see, the government's plan to introduce dematerialized invoicing is primarily designed to combat VAT fraud.

However, there are also benefits for businesses:

Cost savings

Electronic invoicing costs less than paper invoicing: 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 storage.), but also the cost of storing paper documents.

Better management and productivity gains

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

What's more, documents remain more easily accessible if stored in the cloud, making them harder to lose or destroy.

Increased customer satisfaction

Finally, it's worth noting that most customers appreciate an electronically issued invoice, as they no longer receive paper documents to be archived, or digitized for integration 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?

In fact, it's becoming increasingly widespread, as the French government sees it as a way of combating VAT fraud.

This is 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) is required to use electronic invoicing.

💡 To do so, the organizations concerned manage their invoicing via the Chorus Pro public platform.

Electronic invoicing mandatory in 2026 for B2B activities

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

• 2023:
  • all companies concerned will be obliged to accept invoices in electronic format, whatever their size;
  • large companies will be required to issue electronic invoices.
• 2024: E-invoicing will be mandatory for small and medium-sized businesses.
• 2025: SMEs and VSEs will be required to issue invoices electronically.

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

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

How to create a compliant electronic invoice?

Guarantee the authenticity, legibility and integrity of the invoice

It is perfectly possible to create an invoice on paper, then scan it and send it in electronic format. Its probative value (it can be used as evidence) is then guaranteed because it is originally a paper document.

However, if you issue your invoice electronically, a number of obligations must be met to ensure :

• the authenticity of its origin, i.e. 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 these three aspects:

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

Include all mandatory information

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

• date of issue,
• invoice number
• date of sale or service,
• the identity of the buyer (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 merchant: RCS registration number and city of registry office,
  • for craftsmen: Siren number and Trade Register number, and department of registration,
• individual VAT identification number,
• description of the product or service, with details of 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 :
  • discount terms for early payment,
  • the rate of late payment penalties due for non-payment by the due date.

Compliance with invoice retention rules

Last but not least, 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 on another medium 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 the right invoicing software

In view of 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.

By now, you're familiar with the advantages and special features of electronic invoicing, and the legal framework in which it operates.

If you're planning to start using electronic invoicing, it's important to remember that this is a transitional phase. As a result, it's a good idea to give your customers plenty of advance notice of the upcoming changes, so that they aren't surprised when they no longer receive paper documents.

At the same time, we recommend that you communicate and educate the staff affected. In this way, you'll remove any stumbling blocks, as you guide your teams through the digital transformation of your company.