France’s 2026 Finance Bill blocked, putting September’s e-invoicing and e-reporting updates at risk

France’s journey toward mandatory B2B e-invoicingElectronic invoicing - widely referred to as e-invoicing - is the exchange of a digital document between a supplier and a buyer. E-invoices are issued, transmitted and received in a structured data format that enabled automatic and electronic processing. They contain data in a machine-readable format so that an AP system can read an invoice without manual data entry, leading to faster and more efficient invoicing. and B2C e-reporting hit a major political roadblock in recent days.

Along with many EU countries preparing for VAT in the Digital Age (ViDAViDA or 'VAT in the Digital Age', is an EU initiative proposed by the European Commission that seeks to modernise and harmonise VAT processes for member states, by embracing new technologies. It is aimed at updating processes for the management of VAT, and reduce the VAT gap and fraud. The proposal also aims to address challenges in the area of VAT raised by the development of the platform economy.), France has been refining its 2026 digital tax framework but the rejection of the 2026 Finance Bill has now cast uncertainty over several crucial updates, including Article 28.

Bringing you up to speed

On the 22^nd November, the French National Assembly rejected the first part of the 2026 Finance Bill, with 404 votes against and just 1 vote in favour.

This rejection means none of the VAT, customers or e-invoicing measures can be considered secure until a final budget is approved.

The Senate will now review the bill, followed by a joint committee negotiation, before another vote returns to the National Assembly.

Where e-invoicing comes into it

Article 28 – originally approved on 21^st November but now at risk – was the main technical update to France’s mandatory B2B e-invoicing and B2C e-reporting reform. While it does not alter the September 2026 go-live date, it is designed to make the transition more manageable for businesses.

Key elements of Article 28:

1. Further defined the roles and responsibilities of PDPs and the Public Portal (PPF) to ensure clearer governance of e-invoicing and e-reporting flows.
2. Refined the technical framework for invoice transmission, including rules for routing, validation, acknowledgment messages and interoperability between platforms.
3. Updated the structure and content of required data fields, helping standardise invoice formats and improve data quality for both tax and business use cases.
4. Clarified requirements for e-reporting, including the types of transactions affected and the expected reporting intervals.
5. Introduced adjustments aimed at easing onboarding for companies, especially SMEs, by smoothing the migration path ahead of the September 2026 mandate.

Wider VAT measures also frozen

• VAT registration threshold reform
• Digital Services Tax increase from 3% to 6%
• €2 levy on low value imports
• Reduced VAT rates for sports & fair-trade products

What remains unchanged

Despite the political turmoil, the legal go-live date for mandatory e-invoicing is not changed by the vote.

Confirmed timelines:

• September 2026 – Phase 1
  All businesses must be able to receive e-invoices.
  Large and medium companies must issue e-invoices and submit e-reporting.
  Option to extend implementation to December 2026.

• September 2027 – Phase 2
  All small businesses enter the mandate with an option to extend to December 2027.

What is at risk?

What’s at risk is the two-year penalty grace period (2026–2028) proposed in Article 28, which would have shielded businesses acting in good faith and protected their right to deduct input VAT even when formatting issues occurred. This soft landing is no longer guaranteed.

What businesses should expect

While political uncertainty is delaying final decisions, the strategic direction remains unchanged: France is moving firmly toward a fully digital, Peppol-based invoicing ecosystem.

In the months ahead, businesses should prepare for the mandate.

With both chambers now negotiating, companies should monitor the Finance Bill’s progress closely, but continue technical preparation to avoid last-minute disruptions.

How we can help

At Innovate Tax, we understand that preparing for this 2026 mandate can feel overwhelming, especially with the Finance Bill in flux.

That’s why we’ve developed a proven three-step e-invoicing service to guide you from planning to full compliance with confidence, covering readiness assessments, vendor selection, and implementation and compliance support. You can find out more here.