Pressure grows on businesses in France to sign up for e-billing

Tax authorities are reminding businesses to register for facturation électronique (electronic invoicing) by September 2026.

Estimates from state statistics agency Insee suggest that seven million businesses will be affected by the move to mandatory e-billing, and emails were sent out in April urging firms to subscribe to dedicated, paid-for web platforms to facilitate this.

Small businesses and sole traders must sign up to receive invoices from September 2026, and use platforms to issue bills from September 2027. Larger companies must be ready to both receive and issue bills by September 2026.

France’s finance ministry previously confirmed to The Connexion: “The reform of electronic billing applies to everyone who is in the TVA (VAT) system, whether they are over the limit to be registered or not.

“So if businesses have sales figures which mean they benefit from TVA exemption (which has to be mentioned on invoices) and they issue bills to clients who are subject to TVA, then these invoices have to pass by one of the electronic platforms.”

Companies exempt from electronic invoicing

The only exceptions are businesses that do not pay VAT under Article 260 of the Code général des impôts (renting out unfurnished homes or agricultural buildings) and Article 261, concerning fishing, farming, regulated medical professionals, hospitals, care homes, blood transport, teaching, lawyers, some landlords, and other specific activities.

Such businesses are already required to indicate their exemption on the invoices they issue.

Other exempt professions include those covered by Article 291 (certain import activities and some landlords), as well as businesses exempt under rules BOI-TVA-CHAMP-30-10 to BOI-TVA-CHAMP-30-40, which mainly concern the state or local authorities, and certain imports and exports.

The complexity of the framework is illustrated by the inclusion of SCI (société civile immobilière) property companies within the scope of electronic invoicing.

SCIs are set up as legal structures to own and manage property, typically by families or small groups of investors.

A briefing note prepared by the Direction générale des Finances publiques explains that if individuals operate under Code 261 D of the tax code, relating to the renting of homes, they are exempt from VAT and will not have to use platforms to issue bills.

However, they will almost certainly be required to use platforms in order to receive bills.

Furthermore, if the SCI is used to rent out holiday homes with at least three ‘hotel-like’ services – such as provision of bed linen, breakfasts or cleaning – then it is subject to VAT and will have to use the platforms to receive and issue bills.

Other SCIs subject to VAT include those renting out professional premises or parking spaces. The note can be found at here.

Electronic billing platforms are free to set their own charges. In mid-April these ranged from €6 per month including VAT, to more than €30 per month, where the platform was bundled with other software.

The cost of subscribing to an electronic invoicing platform means there is little incentive for businesses to register ahead of the government’s deadline.