France mandatory B2B VAT e-invoices 2023

France is to impose mandatory electronic invoices on B2B transactions between January 2023 and 2025. 

This will include a pre-approval clearance of the sales e-invoices via the government’s Chorus Pro portal before being sent to the customer . This is already in operation for B2G invoices. The withdrawal of paper invoices is included in the latest finance bill. The French are also proposing to introduce in 2023 pre-completed VAT returns, based on submitted e-invoices, which taxpayers could apply to adjust in case of errors or adjustments.

The French e-invoice plan follows the success of Italy’s SdI regime, extend to B2B and B2C transactions in 2019, and real time reporting in Spain and Hungary. France will apply to the EU Commission for a derogation from the EU VAT Directive which ordinarily requires customers to provide written agreements to the acceptance of e-invoices.

Companies will have to use the free Chorus Pro portal to raise and send e-invoices to their business customers. Invoices may be uploaded to Chorus Pro in one of the following ways:

1. Manual entry
2. PDF or XML invoice uploading
3. EDI or API connection.

The collected data would then be used to complete draft VAT returns, including sales and purchase invoices, to be made available to the taxpayers for review and application for adjustments. This would therefore end the model of completion and submission of VAT returns by taxpayers. It is not yet clear how cross-border or non-resident taxpayers would be treated. In Italy, these cases require separate filings from the e-invoice clearance model.

France imposed B2G e-invoices in a phased introduction starting in 2018. It has reviewed B2B mandatory invoices a number of times, including in 2015.