The digitization of invoices goes into effect in France on July 1st, 2024, making the summer of 2024 a taste of reform for businesses.
Before getting into the core of the topic, keep in mind that an invoice has two distinct statuses, even in paper format: issue status (I send an invoice) and reception status (I receive an invoice).
Keeping this in mind will be helpful!
It is therefore from July 2024 that electronic invoicing
will be mandatory in the context of B2B exchanges. It's always important to repeat things so they stick in our mind, because July 2024 is just around the corner, following Christmas 2023....
Global process of digital transformation
But do not be alarmed! This is just a new step in a global process of digital transformation in France that each company has already known for years at different levels of progress. Indeed, digital transformation enables a firm to stay responsive in the face of constant market changes. This applies to all aspects of a business: technologies, processes, culture, but also resources.
In summary, it is a steady, sometimes silent revolution that influences operational processes, products, and services in an effort to align irreversibly with market expectations. The transition to electronic invoicing is part of this evolutionary approach, this digital transformation with an additional concept which is the implementation time accompanied by its mandatory nature.
Every organization must be able to accept electronic invoices as of July 1st, 2024 (I believe I have stated this before). Notably, major corporations will also be required to be able to issue them. This duty to issue securities will not apply to other company formations until 2025 (medium size companies) and 2026 (SMEs and VSEs).
A rhythmic and structured calendar that excludes no one. Now, let's delve deeper into the meaning of electronic invoice: Electronic invoices are invoices that have been issued, transmitted, and received in a structured electronic format that enables their automatic processing.
Not equivalent to a dematerialized invoice
Which is an invoice scanned when it is issued, to be sent and received by e-mail, processed and archived electronically. You will easily understand that these are two distinct worlds and that the implementation of electronic invoicing does not imply having a good old scanner that will pass our invoices in pdf format!!! The electronic invoice is part of a total digital process which requests to apply very specific xml formats like Factur-X
In addition, it must include new information
: the seller's siren number (french legal ID), the buyer's siren number, the payment option for VAT on debits and the nature of the transaction (products sale, services, ...).
In short, a major change for many companies.
It should also be added that a fiscal dimension inherent in the invoice will be introduced in this digital revolution since the notion of e-reporting
is also integrated for export business, which will allow direct transmission of invoicing data to the tax authorities for "pre-filled" VAT declarations. More fluidity, more transparency for all companies.
You now know what an electronic invoice is, but... The digitization of the invoicing process will also make it possible to drastically reduce the cost of processing invoices (a ratio of 1 to 10). It should also be noted that the impact in terms of cash collection will be felt by streamlining exchanges between suppliers and customers.
How to interact with other companies (customers or suppliers) and the tax authorities?
It's very simple (yes, yes, it's true):
- Therefore, there will be no more direct interactions with customers or suppliers.
- Companies will have to transfer their invoices to Chorus PRO or through partners platforms called PDP.
- These platforms will be linked to the public platform Chorus PRO allowing the transmission the data to the tax administration.
Who says obligation says penalties in case of non respect of the process, the deadline. It is therefore strongly recommended that you prepare for this imminent change, and like any change, the preparation phase, anticipation is essential for guaranteed success. We will see in a future article how to lead the change.
So, are you prepared for invoicing digitization?
The My DSO Manager team responds to your inquiries and provides a free online demonstration
of our credit management software.