France e-invoicing: 30% of businesses still not ready

An estimated three in 10 businesses have yet to register for compulsory electronic invoicing (facturation électronique), due to begin in September, despite free registration options now being available.

But the September 2026 deadline does not mean that all businesses must start sending electronic invoices this year, however all must assign an e-invoicing platform.

This includes businesses that do not charge VAT because they benefit from the franchise en base de TVA.

Businesses with simple needs may find a free platform sufficient, while others may prefer paid services that include accounting, bookkeeping or other business management tools.

Who is and is not affected

The reform covers businesses carrying out an independent economic activity that are subject to French VAT rules, regardless of their size or legal structure.

This includes micro-entrepreneurs and other small businesses that do not charge VAT because they benefit from the franchise en base de TVA.

The key point is that the deadlines for receiving and issuing electronic invoices are different.

From September 2026, businesses affected by the reform must be capable of receiving electronic invoices from other businesses. This does not mean that they must start issuing their own invoices electronically this year.

Micro-entrepreneurs and other small businesses have until September 2027 to issue their own B2B invoices electronically.

This means that a micro-entrepreneur who works with a private company can continue sending their invoices in their existing way until September 2027.

However, they must designate an approved platform by September 2026.

This applies even if they do not regularly, or indeed ever, receive invoices from other companies. The requirement is to be capable of receiving an electronic invoice, rather than to actually receive one.

A gîte owner who runs the accommodation as a business is another example.

If the activity falls within the scope of the reform, the owner must be capable of receiving electronic invoices from September 2026.

However, invoices to private holidaymakers are generally dealt with through a separate system known as e-reporting, rather than B2B electronic invoicing.

Certain activities that are exempt from VAT are outside the electronic invoicing and e-reporting requirements for those transactions.

'30% of businesses are not ready'

Pierre Conerady, who leads the e-invoicing project at accountants In Extenso, said he estimates that around 30% of businesses have yet to register.

“It is difficult to be exact because of the huge variety of French businesses, but I would say the figure is now around 30%.”

“Our responsibility as accountants is to persuade them that they have to register, and for our clients the easiest way of doing so is through our in-house platform.”

Prices for existing clients start at In Extenso from €4.50 a month on top of their usual accounting fees.

As the deadline approaches, a number of platforms, including start-up Indy, which specialises in accounting software for small businesses, have begun promoting completely free offers. Another is online bank Shine.

This reporter, who is not in the TVA system but has worked as a self-employed person in France since 1997, signed up to Indy’s free offer.

Registration took around 20 minutes and involved uploading ID documents and business registration details. Indy is registered as a French company, has a high Trustpilot rating and is also on the government’s list of approved platforms.

Mr Conerady said rumours that the government would push back the deadline for the introduction of facturation électronique were wishful thinking.

'It will work eventually'

“Although it might be chaotic in September, especially when it is time for the bills to be paid at the end of the month, there is no going back,” he said.

“We’re like a Gaulish village, with everyone throwing in their opinion and arguing about things, but in the end it will happen on the date and it will work – eventually.

“After all, the timetable was set in 2022, so most businesses have had a long time to prepare and are now ready.”

He said businesses receiving invoices outside the platform system should simply pay them as normal.

The government says it will take a pragmatic approach as the system is introduced, but penalties remain available for businesses that fail to comply.

Fines for failure to set up e-invoice system

Businesses that should have designated an approved platform to receive electronic invoices but have failed to do so will first receive a warning and have three months to comply.

If they remain non-compliant, they face a €500 fine, rising to €1,000 after a further three months.

The government has nevertheless said it will take a tolerant and pragmatic approach to businesses experiencing difficulties when the system launches.

Separate penalties can also apply for failing to transmit required transaction data to the tax authorities.