Electronic invoicing and data reporting

To reduce the July 2024 reform to the sole obligation of electronic invoicing between VAT taxable persons would be to miss an equally important aspect of the text: data reporting. A procedure that could quickly become time-consuming without the appropriate tools.

Tribune by Antoine Wattinne, director of public affairs at Cegid.

The French government has included in the 2020 finance law the generalization of electronic invoicing (e-invoicing) for domestic transactions carried out between VAT taxpayers. Large companies (+ 5,000 employees) will have to comply with this obligation to issue electronic invoices from July 1, 2024, ETIs (+ 250 employees) from January 1, 2025 and other organizations from January 1, 2026.

All companies will therefore be concerned, even micro-enterprises and self-employed entrepreneurs benefiting from the VAT-based franchise. However, from July 1, 2024, all French companies, regardless of their size, will have to be able to receive and accept invoices that will be sent electronically.. They must therefore, on this date, have registered an electronic address in the Public Billing Portal.

E-invoicing will be accompanied by an obligation to transmit invoicing data over time to the DGFiP, called reporting. The company must, in particular, enter the following information: customer identification, services or goods invoiced, price excluding tax, quantities, VAT rate, totals excluding and including tax, etc. Information that will contribute to the fight against VAT fraud through automatic cross-checking operations.

As for the government, it will have access to regularly updated data on business activity, enabling it to manage its economic policy more precisely and the necessary support. Invoicing software publishers will make the necessary changes to enable users to produce invoices that comply with the new regulations.

A more complex reform than it seems… and which requires preparation!

Regarding e-invoicing, a French company sending an invoice to another French company must use electronic invoicing according to the implementation dates planned by the administration for the issue according to the size of the company as mentioned above.

The Public Billing Portal will retain, at a minimum, specific formats: UBL, CII or the very advantageous Factur-X which will often be offered natively in the billing software packages offered by publishers. Partner Dematerialization Platforms may offer specific invoicing protocols as soon as they translate them into a format readable by the Public Invoicing Portal.

The issue of electronic invoices will not be compulsory, neither for B to C exchanges, nor when invoicing to a company located outside France. In these two cases, on the other hand, the e-reporting of data will apply to all operations where VAT comes into play. The data of transactions carried out between the company and individuals will also be reported to the tax administration. : invoices or receipts.

Even companies that do not use any computer system will have to provide this information. The data of transactions carried out internationally, whether to companies or individuals, are also concerned, as well as intra-Community purchases. Finally, data on the collection of transactions will complete the system.

This feedback of information to the DGFiP will result in new reporting obligations for companies.. Performed in aggregate form, it must be carried out within a time frame and a frequency which are not yet fixed by the administration. Software publishers will make sure to integrate them natively into invoicing software.

The objective stated by the tax authorities is to allow, with all these data, a complete pre-filling of VAT declarations. But also to trace the flows of VAT between those who collect it and those who can deduct it, thus making it possible to put a stop to carousel-type fraud, which consists of deducting VAT that has not been paid upstream.

On July 1, 2024, all companies will have to be digitally accessible: positive gains expected for organizations equipped with modern and adapted management solutions!

The July 2024 reform is therefore not limited to electronic invoicing between persons subject to VAT. The reporting of transactions could have a potentially significant impact for those carrying out their invoicing in an artisanal way. Without forgetting that from July 2024, all companies – without exception – will have to accept electronic invoices, received on the platform of their choice. As of July 1, 2024, all businesses will be digitally accessible!

The impact of this reform on organizations should be positive… if the latter are equipped with modern and appropriate management solutions. The majority of these tools will, in fact, ensure the feedback of data intended for the administration. Electronic invoicing will also bring significant gains in productivity in the processing of invoices. It could even promote a large-scale rationalization of the invoicing processes of French companies, resulting in a reduction in late payments. A phenomenon already observed when setting up Chorus Pro for B2G exchanges.

Antoine Wattinne

Antoine Wattinne, Director of Public Affairs at Cegid.

About Cegid

Cegid is a leader in cloud management solutions for professionals in finance (treasury, tax, ERP), human resources (payroll, talent management), accounting, retail and entrepreneurship. With a solid full cloud business model, Cegid is committed to the long term with its customers and supports the digitalization of companies, from VSEs to large accounts, for a superior and distinctive experience in France and abroad. Cegid combines a forward-looking and pragmatic vision of business lines, its strong capacity for innovation, mastery of new technologies and unique knowledge of regulations. In a rapidly changing world, Cegid opens up possibilities and reveals the full value of its customers’ businesses by providing them with useful and innovative solutions.

Bolstered by its international ambition, Cegid now has 3,600 employees and sells its solutions in 130 countries. Cegid achieved annual revenue of 632 million (as of December 31, 2021). Pascal Houillon joined Cegid in March 2017, he is the CEO.

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