The Finance Law for 2024 has made some significant changes to tax regulations, particularly focusing on implementing electronic invoicing and e-reporting. The deployment of electronic invoicing will be done in phases, starting from September 1, 2026, for large and mid-sized companies, and from September 1, 2027, for small and medium-sized companies and microenterprises. The plan is flexible, which means that potential adjustments to deployment dates can be made.
This legislative amendment attempts to address concerns raised in a press release dated July 28, 2023, which announced the postponement of the generalization of electronic invoicing and e-reporting. The goal is to establish a clear timetable for the entry of these measures into force.
Furthermore, the amendment corrects an oversight in the 2023 finance law by supplementing Article 289 of the General Tax Code (CGI) with the obligation to establish a reliable audit trail. This will be considered a security measure in cases where a qualified electronic seal is not used, complementing the requirements for a qualified electronic signature and the exchange of computerized data.
The legislative changes acknowledge the diverse readiness levels among businesses. A survey conducted by the Ipsos Institute, commissioned by the General Directorate of Public Finances in the summer of 2023, revealed that while 70% of companies were aware of the impending reform, only 57% believed they would be ready by July 2024. The degree of preparation varied, especially among small companies, with only 46% claiming to have initiated advanced compliance work.The extended timeline provides businesses with additional preparation time, and the administration aims to strengthen support during this period. The ultimate objective is to facilitate the successful transition to electronic invoicing and e-reporting, fostering competitiveness through the benefits of dematerialization and enhancing efforts against VAT fraud, ultimately benefiting operators committed to fair and loyal competition.
