What obligations does electronic invoicing entail?

Reform objectives

The French government is introducing this reform in response to a number of economic and fiscal challenges:

• Reducing VAT fraud estimated at more than 20 billion euros a year according to Court of Auditors . By tracking transactions in real time, tax authorities will be able to detect anomalies and fraud more quickly.

• Automate invoice transmission This will simplify trade and reduce management costs. A European Commission study estimates that the average cost of an electronic invoice is 4 € , contre 14 à 20 € for a paper invoice.

• Aligning with European practices Several countries, such as Italy, have already successfully adopted similar systems.

The companies concerned

All companies subject to VAT in France will have to use electronic invoicing, whatever their sector or size.

Who's concerned?

• All French companies subject to VAT and compris :

  • Large companies

  • ETI (Intermediate-sized companies)

  • SMEs and VSEs

  • Micro-companies

• Transactions covered the B2B domestic invoices (between French companies subject to VAT).

Which transactions are excluded?

Certain operations remain outside the scope of the electronic invoicing obligation:

• Les ventes B2C (Business to Consumer) A retailer selling a product to an individual does not have to issue an electronic invoice.

• International trade For example, if a French company sells to a foreign company, it will not be subject to the electronic invoicing obligation, but will still have to transmit certain information via the e-reporting .

Example: A French SME selling services to a German company will continue to issue conventional PDF invoices, but will have to declare the transactions to the tax authorities.

Company obligations

The reform imposes 4 main obligations:

Comply before the deadline

The reform will be phased in between 2026 and 2028:

Every company needs to anticipate this transition by adapting its tools and processes now.

Comply with state-mandated billing processes

To be compliant, each invoice must follow a precise framework:

1. Structured format Factur-X, UBL or CII for automated processing.

2. Transmission via an approved platform :

   • PPF (Public Billing Portal) managed by the State.

   • PDP (Partner Dematerialization Platform) approved private solution.

3. Mandatory electronic archiving invoices must be kept at least six years in a secure system.

A company currently using PDF invoices will need to ensure that its invoicing software can generate a structured format and integrate with a PDP.

Use compliant billing software

The company needs to check that its invoicing tool complies with legal requirements.

If the software is not compatible, you will need to upgrade or change tools before the deadline.

Use a Partner Dematerialization Platform (PDP)

Companies can choose between PPF or a Private PDP .

Obligations of companies not concerned by electronic invoicing

Companies not affected by the reform will still have new obligations.

Which companies are not affected?

Companies that do not carry out domestic B2B transactions are not subject to the e-invoicing obligation, but must comply with reporting requirements.

• B2C companies For example, a restaurant selling to private individuals will not have to use electronic invoicing.

• Companies working abroad A French start-up invoicing an American company will not be concerned either.

Their obligations

These companies must transmit certain information to the administration via e-reporting :

• Transaction amounts

• VAT collected

• Customer number

Example: A French consultancy that generates 50% of its sales from customers in Spain will have to transmit invoiced amounts and collected VAT via e-reporting.

What are the penalties for non-compliance?

The penalties will be mainly financial in nature:

Financial penalties

Companies that fail to comply with the reform face fines:

• 15 fine per non-compliant invoice with a ceiling of 15,000 for an amount of .

• Penalties for failure to e-report for the companies concerned.

Administrative and accounting risks

• Rejected invoices A customer could refuse an invoice that doesn't comply with the required format.

• Late payments Poor integration of electronic invoicing can slow down invoice payment.

• Tougher tax controls the administration will find it easier to detect anomalies in VAT returns.

Hero helps you switch to electronic invoicing

At Hero, we simplify the transition to mandatory electronic invoicing. Our solution evolves step by step, to meet your needs today... and anticipate those of tomorrow.

By summer 2025 you can send , receive and payer your electronic invoices directly from your Hero account. Centralized, regulatory-compliant management is just a few clicks away.

From September 2025 we also offer a electronic invoice financing solution optimize your cash flow: you accelerate customer payments and secure your cash flow.

By the end of 2025, we'll be backed by a partner PDP which guarantees a reliable connection to the tax authorities' official directory. And from 2026 Hero will become Partner Dematerialization Platform (PDP) to offer you a 100% integrated service, with no intermediaries.