The reform of electronic invoicing (e-invoicing) in France marks a significant transformation for businesses. It is part of the European initiative for VAT digitisation (ViDA) and aims to enhance tax transparency, reduce VAT fraud, and modernise financial operations.
Starting September 1, 2026, all companies will be required to receive electronic invoices, with the reform being progressively implemented for invoice issuance: large companies and mid-sized enterprises (ETIs) will begin on September 1, 2026, followed by SMEs and microenterprises in September 2027.
This reform represents both a regulatory challenge and a strategic opportunity for CFOs.
What changes with the reform?
The reform introduces two main obligations: electronic invoicing for B2B domestic transactions and e-reporting for all international and B2C transactions.
Electronic invoicing for domestic transactions
All B2B and B2G transactions within France must now be issued in a standardised electronic format and transmitted via certified platforms known as Partner Dematerialization Platforms (PDPs).
Only structured formats (UBL, CII, Factur-X) will be accepted, and PDF formats will no longer be valid.
E-Reporting for international and B2C transactions
Businesses must report data on transactions with international companies and individuals to tax authorities through PDPs.
This includes real-time reporting obligations to provide greater visibility into VAT flows.
These changes apply to all sectors and businesses of all sizes. Compliance will require significant adjustments to systems, processes, and internal practices. Non-compliance risks include tax penalties, but above all the inability to send invoices to clients, putting its cash flow at risk.
To comply with these 2 obligations, companies will be required to use platforms known as PDP (Partner Dematerialization Platforms).
The role of PDPs (Partner Dematerialization Platforms)
Partner Dematerialization Platforms (PDPs) are state-certified intermediaries between businesses, their commercial partners, and tax authorities. Due to their functions, they play a key role in ensuring companies comply with the new regulations.
Their primary responsibilities include:
- Technical validation: ensuring invoices meet technical standards before transmission;
- Data transmission: sending electronic invoices to clients and transmitting tax information to authorities;
- Lifecycle tracking: providing visibility into the status of invoices (issued, received, paid, archived);
- Updating the official directory: maintaining a reliable registry of VAT-subject companies to ensure smooth invoice delivery.
Aside from these core functions to ensure compliance during the invoice and data exchanging process, PDP platforms may offer additional value-adding services. These include data analysis or payment reconciliation, among others.
Why is the choice of a PDP a strategic move?
Choosing the right PDP is crucial for finance and operational teams. A PDP that cannot correspond to an organisation’s needs or match its technological advances may lead to delays, additional costs, or risks of non-compliance.
Best practices for tax compliance
It’s important to remember that while PDPs validate the technical compliance of invoices and data, ensuring the quality of transmitted information remains the responsibility of businesses. Companies must ensure that their VAT configuration is reliable and up-to-date, in particular for the management of the new “good/service/mixed” mention on invoices.
Regarding tax audits, the new regulatory reverses the current VAT declaration system by providing tax authorities with all transaction data upfront so they can pre-fill VAT declarations. Companies must verify these declarations before submission and ensure data reliability and consistency across other fiscal documents (e.g., declared turnover for corporate tax calculations or transfer pricing documentation).
Finally, legal archiving and reliable audit trail obligations remain unchanged; businesses must adapt their audit trails based on changes introduced by the reform.
Impacts on processes and data
The adoption of electronic invoicing entails more than just technical changes — it will have profound impacts on various organisational aspects.
Roles and Responsibilities
- Low-value tasks will be eliminated but replaced by new responsibilities such as real-time verification, compliance management, and collaboration with PDPs;
- Internal procedures and documentation will need updates, potentially requiring staff training for new skills;
- Identifying and streamlining the entry points for supplier invoices will be key, in order to reflect them into the directory VAT-subject companies and thus ensure that invoices are correctly routed to the relevant departments
Data Management
- Accurate client and supplier data (e.g., tax IDs) becomes critical;
- Reliable databases must be established to meet traceability requirements for audits and legal archiving.
Client and supplier workflows (O2C and P2P)
- Order-to-Cash (O2C) and Procure-to-Pay (P2P) processes must adapt to integrate validation, reporting, and traceability requirements;
- Seamless synchronisation between ERP systems, PDPs, and other digital tools is essential.
How to choose your PDP?
The choice of one or multiple PDPs must consider the business’ specific needs. When evaluating providers, teams should evaluate:
- Compliance capabilities: ensure the platform covers both national and international regulations;
- Integration with existing systems: test if the provider is compatible with the current ERP systems and transaction workflows to avoid operational disruptions;
- Value-added services: some platforms offer additional tools like data analysis or payment reconciliation that can optimise processes.
Key actions for CFOs
As finance leaders, CFOs must be prepared for how the new regulations affect their day-to-day operations and processes. The groundwork should be laid in advance to ensure a smooth transition and avoid disruptions in the existing workflows. This will also guarantee companies are ready to comply with the new legislation from day one.
Here’s a list of actions for CFOs to start preparing for the new electronic regulations in France.
Evaluate impact
Conduct an end-to-end diagnosis of current invoicing flows (clients and suppliers) to identify gaps with the new requirements. This will help define priority actions to eliminate such gaps.
Build a roadmap
- Develop a clear strategy that includes ERP updates, PDP integration, and organisational adjustments;
- Allocate budgets and resources for necessary projects before 2025.
Update internal policies
- Ensure VAT configurations comply with the new standards;
- Modernize archiving practices for traceability and data availability;
- Incorporate mandatory invoice information like “goods/services/mixed” labels in anticipation of fiscal impacts.
Leverage opportunities
Use the reform as an opportunity to improve cash flow visibility, reduce errors, automate tasks, and focus on higher-value activities.
For CFOs, this reform should not be seen merely as a regulatory obligation but as an opportunity for modernisation. Proactive preparation will secure compliance while optimising financial processes.
Finance leaders must start conducting thorough analyses of their current systems and workflows as soon as possible to evaluate any gaps within the system. It’s also the right moment to carefully select tools and partners, as well as build a robust implementation strategy to meet all the necessary requirements while enhancing the team’s operational efficiency.
Featuring Philippe Martin, Hubert Christophe, Laurence Bouchard, Clémence Pichon, Vincent Serieys (Eight Advisory) and Riquier Mairesse (Tessi Digital Invoice)
Eight Advisory is an independent international advisory firm specialising in the financial, strategic and operational consulting. With over 900 people including 108 partners we advise company managers, investors and banks within the context of their Corporate Transactions, Restructuring and Strategic & Operational projects. The firm is capable of tapping, by virtue of its status as an Eight International Founding Member, into a global advisory group composed of partners set up in 30 countries across Europe, the Americas, Asia and Oceania.