France is implementing a phased mandatory B2B eInvoicing and eReporting mandate starting from 1 September 2026.
On 10 February 2026, the French Tax Authorities hosted a webinar outlining upcoming eInvoicing and eReporting obligations for non-established businesses VAT-registered in France. These mandates will take effect in a phased manner by company size from 1 September 2026 (large and mid sized companies) and 1 September 2027 (SMEs, micro-enterprises and very small entities (VSEs)).
Foreign companies without a permanent establishment in France, but VAT-registered there, do not fall within the scope of mandatory eInvoicing.
However, they may be subject to:
- e-Reporting of transactions
- potentially eReporting of payments, depending on the operations carried out in France
- Coverage is limited to cases where the non-established taxable person acts as a seller or service provider
France eInvoicing timeline
- 1 September 2026: Mandatory eReporting for large companies and medium-sized companies (ETIs) comes into effect
- 1 September 2027: Mandatory eReporting extends to VSEs, SMEs and micro-enterprises
- 1 September 2027 onward: Non-established businesses, regardless of size, must comply for operations where they are liable for VAT as purchasers (reverse charge situations), including intra-Community acquisitions
Determining country size
Company size is a key factor in determining the start date of the eReporting obligation. For foreign companies without a permanent establishment in France, the following are taken in account:
- Total balance sheet
- Total turnover (whether generated in France or elsewhere)
- Total workforce
The size is assessed based on 3 main criteria: workforce, turnover and total assets.
| Category | Workforce | Turnover | Balance Sheet |
| Micro-enterprise | Less than 10 | Less than €2m | Less than €2m |
| SME | Less than 250 | Less than €50m | Less than €43m |
| ETI (mid-sized) | Less than 5,000 | Less than €1.5bn | Less than €2bn |
| Large company | Less than 5,000 | Greater than €1.5bn | Greater than €2bn |
The size is assessed as of 1 January 2025, based on the last financial year before that date.
- A company moves to a higher category immediately if the workforce threshold is exceeded otherwise, both turnover and balance sheet thresholds must be exceeded.
- A “company” refers to a legal entity identified by a SIREN number in France
Compliance requirements
Businesses must select compliant provider before the applicable deadline. To facilitate compliance, French tax authorities introduced a brand and logo identifying compliant providers:
- Approved platform (Plateforme agréée)
- Compatible solution (Solution compatible
Factors to consider when choosing an eInvoice provider
- Volume of transactions
- Whether an existing VAT reporting solution is already in use
- Budget constraints
For more detailed information on criteria for eInvoice providers, check out our recent Business Case for eInvoicing whitepaper.
Penalties for non-compliance
- Reporting taxpayer: €500 per transmission, capped at €15,000 per year
- Platform: €750 per transmission, capped at €100,000 per year.
- Note: First offences in a calendar year (and the preceding three) may be excused if corrected within 30 days of a tax authority request
Businesses are advised to review their supply chains and counterparties carefully to determine scope and ensure that a compliant solution is implemented in time.
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Authors
Lisa Dowling
Specialising in International VAT Compliance solutions, Lisa brings a wealth of knowledge and insight in her dealings with a host of international clients ranging from start-ups through to multinationals. With 21 years VAT experience behind her, Lisa has managed VAT compliance issues and solutions globally for over 11 years. Fintua have 12,000 + corporate clients in over 109 countries and many of these are members of the Fortune 500.
