The French government has implemented the e-invoice mandate, imposing mandatory electronic invoicing requirements for large taxpayers in France. As of July 2024, businesses are required to issue electronic invoices, provide e-reporting for B2B transactions, and receive e-invoices. While this transition presents numerous advantages, it is crucial to understand the potential consequences of non-compliance.
Main Risks you could face:
Disrupted Business Operations: Failure to issue e-invoices in compliance with the mandate can significantly disrupt your business operations. Non-compliant invoices may not be recognized as valid documents by the tax authorities, leading to delayed payments and strained relationships with suppliers or customers.
Monetary Penalties: Non-compliance with the e-invoice mandate can result in substantial financial penalties. According to Law No. 2022-1157, companies failing to issue e-invoices may face fines of €15 per invoice, with a maximum cap of €15,000 per calendar year per company. Additionally, failure to report the file online may incur a fine of €250 per transmission, also capped at €15,000 per calendar year.
Audit Scrutiny: Non-compliance with the e-invoice mandate may raise red flags during tax audits. The French tax authorities possess comprehensive data on electronic transactions, enabling them to identify businesses that do not adhere to the regulations.
Start Preparing
With the e-invoice mandate in France rapidly approaching, now is the time to start preparing for this transformative change. Basware provides extensive resources, including expert guidance and comprehensive solutions, to help you navigate the intricacies of mandatory e-invoicing.
If you would like to read further on the France 2024 mandate or other upcoming compliance regulations, visit our compliance blog