France is preparing to take a major step toward the digitization of invoicing and tax processes. Starting September 1, 2026, mandatory electronic invoicing will be phased in for businesses in France. The reform affects not only the way invoices are created and received, but also changes how tax-related transaction data will be reported to the French tax authorities in the future.
For businesses, the mandatory switch to electronic invoicing starting in September 2026 is therefore more than just a regulatory update. It is a concrete reason to review existing invoicing, POS, ERP, and PMS processes early on and prepare them for the new requirements.
With this reform, France is introducing mandatory e-invoicing for certain B2B transactions as well as e-reporting for other types of transactions. The goal is to further digitize invoicing processes, make VAT data more transparent, and transmit relevant information to the tax authorities in a more structured manner.
This requirement generally applies to businesses subject to value-added tax that are based in France. Starting in September 2026, all affected businesses must be able to receive electronic invoices. The requirement to issue electronic invoices will then be phased in based on company size.
This is particularly relevant for international corporate groups: even if central systems or ERP governance are located outside France, French legal entities may still be fully subject to French requirements. Foreign companies without a permanent establishment in France are not automatically subject to the French B2B e-invoicing requirement, but may have e-reporting obligations under certain conditions. More on this under E-Invoicing and E-Reporting: Two obligations, one joint rollout
The regulatory timeline is clearly defined and should be incorporated into internal project plans at an early stage:
| Date | Commitment |
|---|---|
| September 1, 2026 |
All affected companies must be able to receive electronic invoices.
Small and medium-sized enterprises (SMEs) and large companies must be able to issue electronic invoices. |
| September 1, 2027 | SMEs and microenterprises must be able to issue electronic invoices. |
| Same rollout | E-reporting generally follows the same timeline as the e-invoicing requirement. |
The French government has confirmed that the requirement to receive electronic reports will apply to all companies starting September 1, 2026. The requirement to submit electronic reports will take effect on the same date for large and medium-sized companies. SMEs and sole proprietorships will follow starting September 1, 2027. The deadlines for e-reporting are aligned with the phased rollout.
In France, the applicable deadline for a company depends on its size.
| Company size | Employees | Revenue / Total Assets | Mandatory as of September 1, 2026 |
|---|---|---|---|
| Microenterprises | Fewer than 10 people | Annual revenue or total assets of no more than €2 million | Receive only |
| SMEs | Fewer than 250 people | Annual revenue of no more than €50 million or total assets of no more than €43 million | Receive only |
| ETI / Small and Medium-Sized Enterprises | Fewer than 250 people | Annual revenue of more than €50 million and total assets of more than €43 million | Exhibition and Reception |
| ETI / Small and Medium-Sized Enterprises | 250 to 4,999 people | Annual revenue of no more than €1.5 billion or total assets of no more than €2 billion | Exhibition and Reception |
| Large companies | 5,000 or more people | Annual revenue of more than €1.5 billion and total assets of more than €2 billion | Exhibition and Reception |
The size categories are based on the French definitions of enterprises. Micro-enterprises are generally classified as SMEs, but are reported separately in the rollout. ETIs include enterprises that are no longer considered SMEs but are not yet classified as large enterprises.
For micro-enterprises and SMEs, this means that even though the requirement to issue electronic invoices does not take effect until 2027, the technical capability to receive them must be in place as early as September 1, 2026. It is therefore crucial—especially for software providers, POS, ERP, and PMS systems, as well as internationally active companies—to assess early on which customer segments are affected and which requirements must be implemented by the first rollout date.
The French reform is not limited to mandatory electronic invoicing. It combines e-invoicing with the electronic transmission of certain transaction and payment data to the tax authorities.
E-invoicing applies to electronic invoices for transactions between VAT-registered businesses based in France. In the future, these invoices must be created in a structured electronic format, transmitted via an approved platform, and reported by the platform to the French tax authorities.
E-reporting applies in cases where transactions are not fully covered by the B2B e-invoicing requirement. This includes, in particular, sales to non-VAT-registered entities, certain B2C transactions, and cross-border transactions with companies abroad. In addition, payment or collection data may be affected if VAT is not due until payment is received.
The penalty framework shows that the reform has implications not only from an organizational standpoint but also from a financial one. Violations of general invoicing requirements can result in fines of up to €75,000 for sole proprietorships, and up to €150,000 for repeat violations within two years.
For businesses, the penalties can be significantly higher: up to €375,000 for failure to comply with the invoicing requirement and up to €750,000 for a repeat violation within two years. Additional penalties may apply for incorrect invoices. Specifically regarding electronic invoicing, the French government also imposes a penalty of €50 per missing e-invoice, capped at €15,000 per year, as well as penalties for failing to use an Plateforme Agréée and for failing to transmit transaction or payment data.
A common mistake is to view the French e-invoicing reform merely as a technical adjustment to the invoicing process. The reform affects not only the creation of electronic invoices, but also invoice receipt, e-reporting, transaction data, payment data, and integration with approved platforms.
For companies, the main priority now is to gain a clear understanding of the situation: Which French legal entities are affected, what size of company applies, and when do the obligations regarding receipt, filing, or e-reporting take effect?
It is equally important to consider the system landscape. Invoicing, transaction, and payment data may come from ERP, POS, or PMS systems and must be complete, structured, and of the required quality. It is therefore crucial to review the relevant processes, data sources, and platform integrations at an early stage. This helps prevent technical bottlenecks, incomplete data, and potential compliance risks during the rollout.
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