What is electronic billing?
Electronic billing is part of a context of the government’s will to simplify and accelerate the digital transition of French companies. The objective is to strengthen its competitiveness by establishing a modern and safe billing process.
The electronic invoice designates an invoice issued, transmitted and received in a dematerialized manner, according to well -defined standards, which distinguishes it from the traditional paper bill. It should be understood that the electronic invoice is not just a scanned version of a paper bill, such as a PDF file. It is a IT document that contains legible and interpretable information automatically by software, and that travels through a partner dematerialization platform (PDP) before transmitting to the client. These platforms will guarantee compliance with current tax standards and facilitate data transmission.
In addition to electronic billing, the transmission of data related to billing and payments used to the tax administration is also provided. This is called electronic information. In this way, the Administration will have access to all transaction data, whether Operations where VAT is applied or not. The main objective is the fight against fraud. Therefore, it is important to be well prepared.
Why go to electronic billing?
The adoption of electronic billing is not simply a matter of modernization, it is a legal obligation. The Government has planned an electronic invoice implementation calendar between 2024 and 2027. Originally scheduled for July 1, 2024, the generalization of electronic billing will be gradually carried out:
- September 1, 2026 : All large companies and companies of intermediate size (ETI) will have the obligation to be able to receive dematerialized invoices and issue dematerialized invoices;
- September 1, 2027 : All small and medium enterprises (SME) and microenterprises will have the obligation to issue dematerialized invoices.
Beyond this legal obligation, electronic billing has several advantages:
- Reduce costs by eliminating paper, impression and postal shipping.
- The management of the invoices will become much more fluid and faster for the equipment, since they will be automatically integrated into the business accounting systems. The objective is also to reduce payment terms, which improves cash management.
- Offer an additional level of safety and traceability. The integrity of the invoices is also guaranteed thanks to the electronic signature.
- Facilitate VAT statements, thanks to the full of the VAT declaration.
How to prepare for this transition?
The deadline is addressed greatly. Therefore, it is necessary to prepare well:
- Before starting: it is necessary to carry out an evaluation of the tools currently used by your company to administer the invoices. This includes accounting or billing software. Therefore, it will be necessary to verify its compatibility with electronic formats and transmission platforms.
- Then, the law requires that companies go through a partner dematerialization platform (PDP) approved to send their electronic invoices. Depending on your activity, therefore, you must choose a service provider with new legal requirements. More than 70 partner dematerialization platforms (PDP) have already been registered by the General Directorate of Public Finance (DGFIP). You have options to choose! Be careful to choose a PDP that guarantees that the invoices sent meet the requirements of the tax administration, particularly in terms of structured format (such as the INVOIC-X format).
- In order for an electronic invoice to agree, it must comply with different criteria that have been defined by the tax administration. You must indicate the following information: the siren numbers of the taxable person and the client, the nature of the operations, mention “option for the payment of the tax according to the speeds” when the service provider opted for the payment of the VAT when invoicing the VAT in the receipts, the delivery address and the date of issuance of the invoice rectified in the event of a reactive participation.
- The transition to electronic billing also implies training internal equipment, in particular administrative and accounting services. Employees must be familiar with the new invoice and transmission management procedures, as well as with the tools and platforms used.
Electronic billing can be afraid, but offers undeniable advantages. Do not wait until the last moment to be interested in him!
The BFM business writing did not participate in the realization of this content. In association with legalstart.
Source: BFM TV
