30% of French companies not ready for mandatory e-billing
Approximately 30% of French businesses remain unregistered for mandatory electronic invoicing set to begin in September, despite the legal framework having been established four years ago through Article 26 of the Amending Finance Law of August 16, 2022.
The reform requires most business-to-business invoices to be transmitted through government-approved online platforms, which automatically relay invoice and VAT information to tax authorities. The system aims to address France's substantial VAT gap of €10-15 billion annually, representing 4-5% of total VAT collected, by enabling real-time monitoring of transactions.
Implementation follows European precedent
France's approach mirrors Italy's pioneering Sistema di Interscambio platform, which has required B2B e-invoicing since January 2019 and successfully reduced VAT fraud through real-time reporting. The French mandate was authorized by EU Council Implementing Decision 2022/133 of January 25, 2022, which granted France special derogation from Articles 218 and 232 of the VAT Directive.
Pierre Conerady, who leads the e-invoicing project at accountants In Extenso, estimates around 30% of businesses have yet to register.
It is difficult to be exact because of the huge variety of French businesses, but I would say the figure is now around 30%. Our responsibility as accountants is to persuade them that they have to register, and for our clients the easiest way of doing so is through our in-house platform.
Accountancy firms like In Extenso charge existing clients from €4.50 monthly on top of usual accounting fees. However, completely free options have emerged as the deadline approaches, including platforms from start-up Indy and online bank Shine.
Platform selection and technical requirements
Over 100 platforms have been officially certified by France's DGFiP tax authority, with businesses required to verify providers against the official government list. Since October 2024, the Public Invoicing Portal now functions solely as a central directory and data concentrator for tax authorities rather than as a free B2B invoicing platform, making registration with an approved platform mandatory for all businesses.
Invoices must be issued in specific structured formats including Factur-X, UBL 2.1, or Cross Industry Invoice, as traditional paper and standard PDF invoices will not be accepted for B2B transactions.
The mandate builds on existing infrastructure from Chorus Pro, which has required all French companies to invoice the public sector electronically since January 1, 2020. That system has exchanged nearly 140 million invoices since 2017, providing valuable experience ahead of the broader B2B rollout.
Recent simplification measures
On August 29, 2025, the French government announced simplification measures including removal of the requirement to electronically report international incoming invoices at line-item level and postponing non-established taxpayers' obligations to September 2027.
Conerady dismissed speculation about deadline postponement.
Although it might be chaotic in September, especially when it is time for the bills to be paid at the end of the month, there is no going back. After all, the timetable was set in 2022, so most businesses have had a long time to prepare and are now ready.
Registration with platforms like Indy typically takes around 20 minutes and involves uploading identification documents and business registration details. Even businesses exempt from VAT under the franchise en base system should register, as invoices they receive from other companies will arrive through the platforms.
Penalties and compliance timeline
The government has indicated a pragmatic approach during initial implementation, though penalties remain available for non-compliance. Businesses failing to register for receiving electronic invoices will first receive a warning and three months to comply. Continued non-compliance leads to a €500 fine, increasing to €1,000 after another three months.
Small businesses must be able to receive electronic invoices from September 2026, but most will not need to issue them until September 2027. Businesses required to issue electronic invoices from that date face fines of €50 per non-compliant invoice, capped at €15,000 annually. Separate penalties apply for failing to transmit required transaction data to tax authorities.
France's initiative forms part of a broader European digital transformation. The EU's VAT in the Digital Age initiative will require mandatory e-invoicing for intra-EU B2B transactions across all member states from July 1, 2030, positioning France as an early adopter of harmonized digital compliance systems.
Conerady advised businesses receiving invoices outside the platform system to simply pay them as normal during the transition period.
We're like a Gaulish village, with everyone throwing in their opinion and arguing about things, but in the end it will happen on the date and it will work – eventually.