30% of French companies not ready for mandatory e-billing

An estimated three in 10 businesses have yet to register for compulsory electronic invoicing (facturation électronique), due to begin in September, despite free registration options now being available.

Most business-to-business invoices will be sent through approved online platforms, which will automatically pass invoice and VAT information to the tax authorities.

Even businesses that do not charge VAT because they benefit from the franchise en base de TVA, or are exempt for other reasons, should register because invoices they receive from other companies will come through the platforms.

Businesses with simple needs may find a free platform sufficient, while others may prefer paid services that include accounting, bookkeeping or other business management tools.

'30% of businesses are not ready'

Pierre Conerady, who leads the e-invoicing project at accountants In Extenso, said he estimates that 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.”

Prices for existing clients start at In Extenso from €4.50 a month on top of their usual accounting fees.

As the deadline approaches, a number of platforms, including start-up Indy, which specialises in accounting software for small businesses, have begun promoting completely free offers. Another is online bank Shine.

This reporter, who is not in the TVA system but has worked as a self-employed person in France since 1997, signed up to Indy’s free offer.

Registration took around 20 minutes and involved uploading ID documents and business registration details. Indy is registered as a French company, has a high Trustpilot rating and is also on the government’s list of approved platforms.

Mr Conerady said rumours that the government would push back the deadline for the introduction of facturation électronique were wishful thinking.

'It will work eventually'

“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,” he said.

“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.

“After all, the timetable was set in 2022, so most businesses have had a long time to prepare and are now ready.”

He said businesses receiving invoices outside the platform system should simply pay them as normal.

The government says it will take a pragmatic approach as the system is introduced, but penalties remain available for businesses that fail to comply.

Businesses that should have registered with an approved platform to receive electronic invoices will first receive a warning and have three months to comply. 

If they still fail to do so, they face a €500 fine, rising to €1,000 after a further three months if they remain non-compliant.

Small businesses must generally be able to receive electronic invoices from September this year, but most will not have to issue them until September 2027. 

Businesses required to issue electronic invoices from then face fines of €50 per non-compliant invoice, capped at €15,000 a year.

Separate penalties can also apply for failing to transmit required transaction data to the tax authorities.