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France and Germany e-invoicing and e-reporting mandates: Everything businesses need to know

France and Germany are set to implement mandatory electronic invoicing (e-invoicing) and electronic reporting (e-reporting) for businesses, with significant developments in both countries marking a shift toward digital tax compliance. These measures aim to enhance tax compliance, streamline administrative processes, and align with broader European Union digital initiatives.

France: Revised implementation timeline

The French tax authorities, Direction Générale des Finances Publiques (DGFiP), have outlined a phased approach for the rollout:

  • September 1, 2026: All businesses must be capable of receiving e-invoices. Large and medium-sized enterprises are required to issue e-invoices and comply with e-reporting obligations.
  • September 1, 2027: Small and medium-sized enterprises (SMEs) will be mandated to issue e-invoices and adhere to e-reporting requirements.

This staggered implementation is designed to provide businesses with adequate time to adapt to the new digital invoicing system.

France: Establishment of governance bodies

To facilitate the transition, DGFiP has initiated the creation of key governance structures:

  • AFNOR Commission: Scheduled to commence in January 2025, this commission will define e-invoicing standards, ensuring a unified operational framework among Partner Dematerialisation Platforms (PDPs) and business information systems. It will also address sector-specific requirements and coordinate with European efforts to harmonise e-invoicing standards across the EU.
  • French Peppol Authority: DGFiP has confirmed plans to establish a national Peppol Authority to oversee the governance of interoperability between PDPs. This initiative aims to facilitate seamless electronic document exchanges, promoting efficiency and standardisation in line with European standards.

Germany: New mandates and developments

Germany is also advancing its e-invoicing initiatives, with the Federal Ministry of Finance publishing a discussion paper in July 2023 that outlines plans for mandatory B2B e-invoicing. Key points include:

  • Scope of Mandate: All German resident businesses will be required to issue e-invoices for domestic transactions. Cross-border transactions remain subject to EU regulations.
  • Expected Timeline: The rollout is projected to begin in 2026, though exact dates and transitional periods are under discussion.
  • Format and Standards: Germany plans to adopt a centralised reporting mechanism similar to Italy and France, likely leveraging the Peppol network to standardise invoice exchanges and ensure compliance.

Germany: Proposed reporting mechanism

The discussion paper emphasises the need for a streamlined system that minimises administrative burdens while improving tax transparency. Businesses will likely need to submit invoice data to a centralised platform operated by German tax authorities. The system will automatically verify the data and notify the parties involved of any discrepancies.

Implications for businesses in both countries

Businesses operating in France and Germany should prepare for the upcoming mandates by:

  • Assessing Readiness: Evaluating current invoicing systems and processes to ensure compatibility with the forthcoming e-invoicing and e-reporting requirements in both countries.
  • Engaging with Platforms: Identifying and collaborating with certified e-invoicing platforms that align with each country’s technical standards and compliance frameworks.
  • Monitoring Updates: Staying informed about further announcements from tax authorities in France and Germany regarding technical specifications and compliance guidelines.

The transition to mandatory e-invoicing and e-reporting in France and Germany represents a significant shift in their approaches to tax administration, aiming to enhance efficiency, reduce fraud, and align with the EU’s broader digital transformation objectives. Businesses are encouraged to proactively adapt to these changes to ensure seamless compliance and capitalise on the benefits of digital invoicing.