Are SCI property owners affected by France’s new e-billing rules?
E-billing changes impact millions across France, including many property owners
Reader Question: I received an email from my accountant today informing me that as I own my property through an SCI, I need to sign up for electronic billing, and am now already late on doing so. I am unsure if I am really impacted, and cannot find out anything about this – do I need to sign up?
People who hold their property through an SCI (Société civile immobilière) may be impacted by France’s new e-billing rules.
However, similar to other property owners, they are only subject to the rule in specific situations.
In addition, those who are affected may only be required to sign up to receive invoices, rather than also send them electronically.
We review the rules below.
Some owners exempt
The first thing to note is that in many instances, home owners are exempt.
People who own their properties through an SCI but use it exclusively for personal use and to share ownership (for example, partners, or between family members) are not impacted by the changes.
This is because they are not subject to VAT (TVA) on activity related to the property.
If they hire tradespeople to work on the property, they are only doing so as a private client for personal reasons, and not business to business.
Changes for renters
If your SCI is being used for other reasons, however, you are likely to be impacted by the changes.
In some cases, however, you will only need to sign up for an e-billing platform to be able to receive electronic invoices for work undertaken by tradespeople or companies.
This includes where you are renting out unfurnished accommodation long term, unlike for ordinary members of the public who have no business SIRET number.
Other situations where this applies include renting out furnished properties on a long-term or short-term basis, or renting out unfurnished premises for professional use without opting for VAT.
Landlords holding rental properties through an SCI must use one of the approved platforms.
As these owners only need a basic version which lets them receive e-invoices, it should be straightforward to find a platform offering a free e-billing service.
More information is available in our article here.
It should be noted that SCIs should take care over carrying out furnished rentals, as there are specific rules relating to this and liability to corporation tax. An alternative is for an SCI to rent property out unfurnished to another entity (including to the shareholders as private individuals) which can then carry out the furnished rentals.
Some will need to send e-invoices in 2027
Owners of other properties owned through an SCI are impacted by the second element of the e-billing changes, which require them to issue electronic invoices from September 1, 2027.
This applies to anyone whose SCI is automatically subject to VAT (soumise à la TVA de plein droit), or those renting to professionals and who have taken up the option to charge VAT (avec option de TVA). The latter is sometimes done, for example, to recover VAT from supplies.
This includes those:
Letting furnished properties that include at least three ancillary services comparable to
hotel services (e.g., breakfast, cleaning, welcoming guests, changing linen…)
Letting properties fitted out for professional use
Letting parking spaces (not linked to a residential property rental)
In this case, they must ensure their e-billing service also allows for the eventual issuing of e-invoices from next year.
They are also required to undertake e-reporting, requiring them to upload bills etc issued to clients, tenants, etc, who do not have their own e-billing account.
The government has recently reaffirmed that those who simply rent out properties on a long-term basis only need to be ready to receive invoices, and not issue them.
“The receipt of rental income, much like the receipt of interest or dividends, is not sufficient in itself to characterise an economic activity that is inherently subject to VAT,” said the government.
“Thus, the presumption remains that an investor who leases a property they own is acting solely in that capacity; consequently, there are no grounds to automatically subject such an investor to VAT on these transactions, even if they derive recurring income from them.”
However, tax authorities state that “whether or not an SCI is subject to VAT depends on factual circumstances that must be analysed on a case-by-case basis.”
Those who let properties may wish to take advice if unsure of their obligations.
The government has issued a fact sheet, available here, which addresses how SCI owners are impacted by the new rules.
