From July 1, 2024, no more invoices in PDF and paper format, all French companies subject to VAT will have to adopt electronic invoices. This reform aims to combat VAT fraud and ensure transparency in business relations. It also allows the state to identify sectors that need support.
From July 1, 2024, all companies established in France and subject to VAT will have to accept invoices in electronic format. This transition to the electronic billing system will happen gradually between 2024 and 2026.
It is important to note that the Direction Générale des Finances Publiques (DGFIP) electronic invoice differs from regular paper or PDF invoices. It must be issued, sent, and received in an intangible form, and it must include a set of structured data.
From now on, it will no longer be possible to send your invoices directly to professional clients. They must go through the Partner’s Materialization Platform (PDP) or Public Billing Gateway (PPF), which will be responsible for physically sending them to the professional client’s platform.
It will be necessary to choose a platform and announce this choice to the tax authorities. It is important to keep in mind that the approaching date of entry into force of the legislation may result in an influx of platform publishers, so plan ahead to avoid being caught by surprise.
The deadlines and frequencies for data transmission are specified in the regulatory texts published on October 9, 2022.
The Electronic Invoices Project in France aims to cover invoices issued in electronic form for transactions between VAT payers. It provides for the data of these invoices to be sent to the administration with a view to updating VAT collection and controls.
Obviously, this new organization will upset the organization in many companies. They will be obliged to exchange purchase and sales invoices only electronically.
Concretely, what does the law say? How can your company comply with this billing reform? What are the advantages of a GED program to be in compliance?
What are the requirements for amending the 2024 Law?
From July 1, 2024 through January 1, 2026, depending on its size, your company should be able to issue and receive electronic invoices from your suppliers. It should be noted that the Directorate General of Public Finance (DGFIP), prof Electronic invoice It must be 100% dematerialized, i.e. from creation to dispatch, including its receipt and processing. Quite different from the simple invoice in PDF format, it must be produced in one of the three formats compliant with the European semantic standard EN 16931:
- UBL (Universal Business Language)
- CII (Electronic Data Interchange)
Then, the invoice must not be sent directly, but must go through the public billing portal, which is operated by the tax authorities. Invoices will also be received through this same portal. So, to issue or receive a compliant invoice, you can either connect directly to this portal using the Dematerialization (OD) operator. You can also subcontract these operations via the Partner Material Removal Platform (PDP), a state-approved private operator.
Moreover, the reform also requires reporting to the tax authorities life cycle of the invoice through statuses such as deposit, rejection, payment or collection. Finally, it should be your bills stored in electronic form for a period of not less than 10 years secure their safety availability over time.
What are the advantages of switching to the electronic billing system?
Among the many advantages of electronic billing, cost savings is definitely the most important. The paper bill costs an average of 15 euros for an incoming bill and 6 euros for an outgoing one. However, electronic invoice processing only costs your company between 40 and 45 cents. The electronic invoice also reduces late payments by 12%.
Other benefits of this Fix the bill We are:
- simplification and reliability of exchanges;
- Improve the traceability of your invoices, from estimate creation to payment validation thanks to the trusted audit trail;
- strengthening the competitiveness of French companies;
- Reducing your carbon footprint…
How can a GED program make you comply with the fix?
To keep pace with these developments, companies must implement a suitable e-invoice management solution effectively. This is where Electronic Document Management (EDM) software can come in handy. It is a computer system that allows the structure to manage all its documents, including invoices, electronically and securely.
Using GED allows you to collect all incoming and outgoing flows, regardless of source, in one space: contracts, letters, invoices, quotes, purchase orders, payment slips, and so on. Documents can be accessed from any device (computer, smartphone or tablet) at any time. This tool also plays a role in enhancing collaboration between and with your employees, partners or customers thanks to its secure sharing feature.
The fact of instant access to information makes it possible to notify users of all actions and progress of the document (sign, update, fill in, etc.). In the event of an error, such as an entry error or a missed deadline, GED gives the ability to respond quickly.
GED integrates many diverse careers in order to adapt to the needs of companies. Here are the main unavoidable points that will help you comply with the repair:
- centralization of all company documents;
- automatic classification of documents related to life cycle management;
- access to information in real time;
- automation of workflow processes;
- archiving and securing documents in a digital safe;
- secure sharing of data;
- Maintaining company documents.
Advantages of Using a GED Program for Compliance with Reform
Whatever the size of your company, SME, ETI or large group, use EDM software It can help you successfully convert to electronic billing system. Its advantages are many. In particular, it allows you to:
- administrationSend and archive your invoicescompletely safely, directly from the GED software platform;
- Full traceability for all your business transactions, from receipt to payment, facilitating tax controls and audits;
- Store all your invoices and other documents in an electronic safe, at Compliance with applicable legal framework and standards.
- Access your documents more easily, wherever you are and across any device (smartphone, computer or tablet), with advanced time-saving search tools;
- Share your business documents securelyby assigning specific access levels to users according to their roles and responsibilities;
- Automate your invoice validation and payment processes To increase efficiency and productivity, but also to avoid the risk of data entry errors;
- Ensure that your tax documents match With the applicable regulations, thanks to the strict management of data flow.