All About e-Reporting under France e-Invoicing

The government of France plans to implement mandatory electronic invoicing (e-invoicing) for VAT-registered companies in phases from 2024. The e-invoicing mandate applies to 

• Large companies from July 2024
• Medium-sized companies from January 2025
• Small, medium-sized and micro-enterprises from January 2026

However, all businesses must receive electronic invoices from 1st July 2024. Like e-invoicing for B2B transactions, the government plans to implement e-reporting for B2C and international B2B transactions.

Accordingly, e-reporting applies to many French companies, and they should understand it. So, this article explains e-reporting, how it works, and the differences between e-reporting and e-invoicing.

What is e-reporting in France?

e-Reporting means transmitting information on B2C and international B2B transactions. This is similar to domestic B2B transaction reporting. The companies registered under France VAT must do e-reporting along with e-invoicing.

Applicability of e-reporting in France

All companies that are making international B2B and domestic B2C transactions fall under the scope of e-reporting. Also, foreign companies not established in France yet out is carried out business subject to VAT will fall under e-reporting. 

Below is the timeline for e-reporting, which is the same as the B2B electronic invoicing.

• Large companies: On 1st January 2024
• Medium companies: w.e.f 1st January 2025
• SMEs: w.e.f 1st January 2026

What information must be shared in e-reporting?

Article 290 of the General Tax Code (GTC) details the transactions to be declared through e-reporting. The reporting system will be the same as the electronic invoice, and the company shall send the information through a DP to PIP.

The following information needs to be submitted in case of international B2B transactions:

• Intracommunity delivery of goods and services.
• Exports of home goods or products (to companies outside the EU)
• Operations with overseas territories

The information to be submitted while e-reporting is the same as an electronic invoice. However, the business shall report the VAT code as tax ID in case of intracommunity transactions (within the EU) and a different code for transactions outside the EU.

Further, information must be submitted in case of B2C transactions:

Businesses should consider their IT infrastructure while deciding on reporting B2C transactions.

How does e-reporting work in France?

e-Reporting varies from type of transaction. Usually, the companies send transaction information to their Dematerialization Platform (DP) called Platforme de dematerialization parternier (PDP).

The DP performs the required checks as mandated by DGFiP.

Once the transactions are verified, the PDP reports the required data to DGFiP through the Public Invoicing Platform (PIP).

What is the lifecycle of e-reporting?

The e-reporting lifecycle includes the record-keeping of the information’s stages, from data receipt by the DP until its declaration to the PIP. This record-keeping lets the department intensively monitor the life cycle of the transactions.

DGFiP recommends that DPs keep a record of the following statuses:

• Data receipt by the platform
• Acceptance by the platform
• Partial acceptance
• Rejection
• Provision of administration

Differences between e-reporting and e-invoicing

e-Invoicing is the process of generating, sending, and receiving electronic invoices in a standard format containing the mandated data. Under e-invoicing, French companies shall issue e-invoices for all B2B transactions.

e-Reporting covers the transactions not covered by the e-invoicing mandate. It mandates reporting data related to international B2B transactions, transactions between taxable persons not established in France (yet fall under France VAT), B2C transactions, and payment of invoices such as status or billing cycles.

e-Reporting is complementary to e-invoicing but for different types of transactions. e-Invoicing mandates private companies registered under French VAT to submit all invoicing and payment-related information to the tax authorities. In contrast, e-reporting is not limited to companies that use e-invoicing.

FAQs on e-reporting in France

Do international transactions fall under e-reporting in France?

e-Reporting applies to international transactions which are 

• Not covered under e-invoicing or 
• Not conducted between VAT taxpayers

What is the timeline for the implementation of e-reporting?

The e-reporting follows the same timeline as the B2B e-invoice:

• Large companies:  1st July 2024
• Mid-sized companies: 1st January 2025
• SMEs and micro-enterprises: 1st January 2026

What is the frequency of e-reporting in France?

The tax regime applicable to each company decides the e-reporting frequency:

• Companies for which the normal tax regime is applicable shall do the e-reporting thrice a month, i.e., within four days from the 10th, 20th, and last day of the month.
• Companies for which the special tax regime is applicable shall file a monthly e-report within seven days after month-end.

Are companies outside France fall under e-reporting?

Foreign companies shall do e-reporting for transactions deemed to be conducted in France that are subject to VAT. For example, remote sales of intra-community goods, home goods or products exports to companies outside the EU, and operations with overseas territories.