Electronic invoicing: get ready for 2026 now

Context of the reform

Electronic invoicing reform is part of a series of measures decided by the government aimed at:

• modernising financial processes;
• increasing tax transparency;
• combating VAT fraud.

By progressively imposing this system on all businesses subject to VAT, the government aims not only to secure trade but also to optimise the collection of tax revenues.
By 1 September 2026, all businesses established in France must be able to receive electronic invoices.
The obligation to issue these invoices will apply from 1 September 2026 for large companies and intermediate-sized enterprises (ISEs), and from 1 September 2027 for VSEs, SMEs and sole traders.

The challenges: what’s behind this reform?

The government is introducing this reform to:

• ensure that invoices are only exchanged in paperless format;
• create an invoice flow that keeps the Public Finances Directorate General (Direction Générale des Finances Publiques, DGFiP) informed;
• structure going paperless with several standards: CII, UBL, Factur-X
  Factur-X is a structured PDF format containing XML data. The advantage of this format is that it can be read by both humans and machines.
  
  

Electronic invoicing aims to:

• Reduce processing costs and errors for businesses
• Automate tax returns and tax audits (eventually)
• Improve what the DGFiP knows about companies
• Combat VAT fraud: estimated at €16 billion

To put it simply, an electronic invoice is a paperless invoice containing information that can be used for automated processing by machines. It can no longer be in paper format, nor can it be in simple PDF format.

What are the benefits of electronic invoicing for your company?

Digitalising the invoicing process with the reform offers a number of advantages:

• It speeds up the invoicing process, facilitates monitoring and ensures management data is reliable.
• It reduces the rate of invoicing errors from 15-18% to ~0% by running invoices through checks on PDPs, thereby avoiding common errors such as mistakes in amounts or wording.
• It shortens payment times and delays with the invoice tracking lifecycle.
• You can monitor the payment status of invoices issued/received in real time.
• It improves document conformity, as invoices will have to be issued by an approved issuer and their content will be checked automatically.

Companies subject to VAT

Electronic invoicing applies to transactions between entities subject to VAT that fall within the scope of VAT in France and for which French invoicing rules apply. Sole traders subject to VAT are also affected.

There are some exclusions: fields that are not subject to VAT:

• Healthcare
• Teaching and continuing education
• Defence
• Non-profit organisations
• Banking/insurance

Timeline of obligations: when do you have to issue and/or receive electronic invoices?

As a VSE/SME subject to VAT, you will need to respect the timeline to ensure compliance:

• 1 September 2026: You will need to be able to receive electronic invoices from your suppliers and large companies (EDF, Orange, etc.).
• 1 September 2027: You will need to be able to issue electronic invoices to your customers.

If companies fail to comply with the reform

• No possibility to deduct VAT from invoices
• Flat-rate fine of €15 per invoice if not issued electronically, capped at €15,000 per calendar year

The two electronic invoicing-related obligations are:

• E-invoicing: the obligation to issue and receive electronic invoices for B2B transactions between companies subject to VAT.
• E-reporting (data transmission): concerns the obligation to transmit transaction and payment data to the tax authorities for B2C and international B2B transactions.

E-invoicing and e-reporting are used for different reasons and work differently.

Ask yourself: Who are your customers? You must choose the right one depending on the type of customer and the type of transaction:

• Your customers are professionals (B2B) in France: you are subject to e-invoicing;
• Your customers are private individuals (B2C) and/or international professionals (iB2B): you are subject only to e-reporting.

❓Unsure about your obligations? 

B2B e-invoicing with mandatory PDP use

E-invoicing describes the transaction between two French companies subject to VAT.
For international transactions with individuals or companies, see e-reporting.

E-invoicing will be used to declare VAT and inform the government of invoices. It must involve a platform known as a Plateforme de Dématérialisation Partenaire [Paperless Partner Platform] (PDP). The government will have validated around 80 PDPs in 2025. Companies will be free to choose their PDP according to the services they require. All PDPs will have a cost; there will be no free solutions.

The main functions of a PDP will be:

• Checking in the directory database: 
  The PDP ensures your customer is registered with the DGFiP directory with all the mandatory information and has its own PDP, which can receive the electronic invoice.
• Transmitting electronic invoices: 
  The PDP ensures electronic invoices are transmitted securely between suppliers and customers, using standardised formats such as Factur-X.
• Validating invoice formats: 
  It checks that invoices comply with legal and tax requirements before forwarding them to the tax authorities.
• Accepting or rejecting invoices: 
  On the incoming side (customer side), the PDP lets you check invoices and then accept or reject them at the click of a button.
• Electronic archiving: 
  The PDP offers secure electronic invoice archiving, guaranteeing their integrity and accessibility for the legal retention period.
• Monitoring, lifecycle and traceability:
  You can track invoice status (issue, receipt, validation) as well as payment stages (lifecycle) to ensure transactions are fully traceable.
• Interoperability: 
  It ensures interoperability between different invoicing and accounting systems, making it easier for companies to introduce electronic invoicing processes.
  
  

E-reporting: B2C and international B2B

Transactions between entities subject to VAT established in France and one that is not or a private individual, or an international B2B transaction

E-reporting informs the tax authorities of transactions outside the scope of e-invoicing, i.e., iB2B transactions (from a French company to a non-French company) and B2C transactions.

E-reporting will involve exchanging

• Transaction data: to declare turnover on sales transactions to the tax authorities
• Payment data: to declare incoming payments for services for which VAT is payable on incoming payments

E-reporting is carried out either using the paperless software recommended by the tax authorities or via point of sale (POS) software using the ‘Ticket Z’ format (receipt), which contains all the information for each transaction.

However, as with e-invoicing, the data will have to pass through a PDP (see above).

This means that your POS software or invoicing tool must be compatible with your PDP in order to transmit this data.

⏱️The clock is ticking on compliance with the e-invoicing reform. Setting up a suitable e-invoicing solution requires careful preparation from the outset.

To get ready:

1.Update or change your invoicing software 

Say goodbye to Word, Excel or simple PDF invoices! Make sure you have invoicing software that is compatible with one of the three new accepted standards (most likely Factur-X).
Some tools will be PDPs, others will only be opérateurs de dématérialisation [digitisation operators] (ODs).
It’s easiest to use a PDP, as the sending workflow will be integrated into the tool.
ODs have not received government accreditation as PDPs. However, they are supposed to ensure interoperability with all PDPs. A second tool – a PDP – will be required to manage invoice flows.
👉 At Anderlaine, your Customer Experience Manager will advise and guide you in selecting the most suitable software.

2.Choose an electronic invoice transmission solution: PDP

You’ll need to choose a PDP, paid online software you use to issue and receive your invoices with ease. Your PDP will also be responsible for transmitting the necessary information to the DGFiP.

As explained above, some POS and invoicing software will not be PDPs, but simply ODs. In this case, simply connect it to your chosen PDP.

👉When choosing your PDP, it’s a good idea to draw on your firm’s expertise. When you choose a PDP, you should consider the size of your company and your sector of activity.

3.Register with the business directory:

You will have to register with the DGFiP directory, and provide your PDP and company details starting in January 2026 and before September 2026. You need to register in order to receive your electronic invoices. Plan ahead to prevent last-minute stress!
👉A tip from Anderlaine: make sure you consult your accounting firm before taking any action.

Electronic invoicing glossary

Les Opérateurs de Dématérialisation (OD)[Digitisation Operators] (ODs)

These operators offer assistance to companies upstream or downstream of PDPs to help them comply with new regulatory obligations.

Les Plateformes de Dématérialisation Partenaires [Paperless Partner Platforms] (PDPs)

These are private platforms that have been registered with the government. Their main tasks:

• Exchanging electronic invoices,
• Checking the conformity of documents filed,
• Providing data for updating the central directory,
• Transmitting electronic invoices and guaranteeing their originality,
• Ensuring interoperability and availability of documents,
• Ensuring that transmitted flows are properly managed,
• Ensuring that e-invoicing and e-reporting data is correctly transmitted to the authorities.

DGFiP = Direction Générale des Finances Publiques (Public Finances Directorate General)