E-invoicing 2026-2027 France: the compliance guide for SMEs

Up to date as of 15 May 2026.

France's mandatory B2B e-invoicing reform rolls out in two stages: all VAT-registered businesses must be able to receive electronic invoices from 1 September 2026, while large companies and mid-sized enterprises (ETI) must also start issuing them from that date. SMEs and micro-businesses have until 1 September 2027 for mandatory issuance. Non-compliance carries a penalty of 15 euros per invoice, capped at 15,000 euros per year.

Sources: Finance Act 2024 (LFI 2024) and Decree of 30 October 2023.

France's mandatory e-invoicing reform rests on three founding texts.

Ordinance No. 2021-1190 of 15 September 2021 established the principle of the obligation and authorised the government to legislate by decree. Article 92 of the Finance Act 2022 (LFI 2022) embedded the obligation in the Tax Code (CGI) and set an initial timeline. Finally, the Finance Act 2024 (LFI 2024) — following a first deferral in 2023 — reset the deadlines to those currently in force: September 2026 for large companies, September 2027 for SMEs.

The reform pursues three goals: curbing VAT fraud (worth several billion euros annually in France), improving the reliability of accounting and tax data, and reducing the administrative burden on businesses through automated exchanges.

This reform aligns with the European standard EN 16931, which defines the semantic data model for structured electronic invoices, harmonised across the European Union.

The reform applies to transactions between French companies registered for VAT — domestic B2B sales of goods and services between two entities established in France.

Excluded from e-invoicing scope:

• Sales to private individuals (B2C) — subject to e-reporting obligations (see below).
• B2B transactions with foreign companies — also subject to e-reporting.
• VAT-exempt transactions without deduction rights (certain healthcare professionals, educational institutions, non-taxable associations).
• Transactions by businesses in the VAT exemption regime (micro-businesses below threshold) for issuance, until 1 September 2027.

Three structured electronic invoice formats are recognised under French regulations, all compliant with the EN 16931 standard.

Factur-X is a hybrid format combining a human-readable PDF with a machine-readable XML file. It is the most widely used format in France as it maintains visual readability while enabling automated processing. It is available in several profiles depending on the level of detail required (Minimum, Basic WL, Basic, EN 16931, Extended).

UBL (Universal Business Language) is an XML standard widely used in Northern Europe and for public procurement. It is fully structured, with no PDF component.

CII (Cross Industry Invoice) is another structured XML format, developed by UN/CEFACT and used notably by the ZUGFeRD standard in Germany.

The choice of format depends primarily on the capabilities of your ERP or accounting software. In client files handled by Hayot Expertise in Paris, most SMEs opt for Factur-X EN 16931, which offers the best balance between compatibility, readability and automated processing.

E-invoicing does not mean sending a PDF by email. It requires a secure, traceable transmission circuit.

The Public Invoicing Portal (PPF)#

The PPF is the State-managed platform, available free of charge. It serves as the central directory — the recipient register — and as a gateway for businesses that do not wish to use a private operator. All businesses, whether they use a PDP or the PPF directly, are registered in this directory.

Certified Partner Dematerialisation Platforms (PDP)#

PDPs are private operators certified by the DGFiP (French Tax Authority). They handle the issuance, receipt, routing and archiving of electronic invoices, ensuring compliance of the data transmitted to the tax authorities. Certified or pending-certification PDPs include operators such as Pennylane, Sage, Cegid, Dext, Pagero, as well as several specialist publishers.

The transmission flow#

The standard circuit for a B2B electronic invoice follows these steps:

1. Sender generates the invoice in a structured format (Factur-X, UBL or CII) in their software.
2. Sender's PDP validates the invoice's compliance and transmits it through the network.
3. Recipient's PDP receives the invoice and makes it available to the recipient in their account.
4. Recipient integrates the invoice into their accounting system.
5. PPF simultaneously receives the fiscal data required for VAT monitoring.

This flow entirely replaces the sending of invoices by email or post between VAT-registered entities.

E-reporting is a distinct but complementary obligation. It requires transmitting transaction data to the DGFiP for operations outside the e-invoicing scope:

• B2C sales (to private individuals in France).
• International B2B transactions (foreign customers or suppliers).
• Payments related to service transactions.

E-reporting does not replace the VAT return: it feeds the pre-filled declaration that the DGFiP makes available to businesses, as part of a longer-term simplification drive.

Data transmitted includes: net amount, VAT rate and amount, transaction date, and currency. It is transmitted via the PDP or the PPF, on the same cycles as e-invoicing.

The reform extends and clarifies the mandatory information already required by Article L441-9 of the French Commercial Code. A compliant electronic invoice must include:

• The SIREN number of both the issuer and the recipient.
• The nature of the transaction (goods delivery, service provision, or mixed).
• The VAT exemption reason when applicable (standardised code).
• A unique transaction identifier assigned by the PDP.
• Standard elements: date, invoice number, description, quantity, unit price, VAT rate, net amount and total including VAT.
• Banking details (IBAN) for invoices with a payment due date.

Article 1737 of the CGI provides for a penalty of 15 euros per invoice not transmitted or non-compliant, capped at 15,000 euros per calendar year. This penalty can apply both to the issuer who does not transmit electronically and to the recipient who refuses to receive an electronic invoice.

Beyond the direct fine, non-compliance exposes the business to tax risk during an audit: disallowance of VAT deductibility on non-compliant invoices, tax reassessments and late payment interest.

The under-estimated risk: many SME managers believe they have until 2027 to deal with the issue. This is incorrect. The receipt obligation applies from September 2026 to all businesses. Not being connected to a PDP by that date means being technically unable to receive invoices from large-company suppliers — creating real operational friction in commercial relationships.

The PDP market includes several dozen certified or pending-certification operators. The right choice depends on your situation.

Cost: PDP subscriptions range from 5 to 50 euros per month depending on invoice volume and included services (archiving, bank reconciliation, accounting integration). Mass-market solutions such as Pennylane or Sage offer accessible pricing for SMEs.

ERP / accounting software integration: the priority is to choose a PDP natively connected to your existing management tool. A custom integration costs between 1,000 and 5,000 euros as a one-off, excluding ongoing maintenance.

Invoice volume: an SME issuing 500 invoices per month has different needs from a sole trader issuing 20. Tier-1 solutions (Pennylane, Cegid, Sage) handle all volumes.

Support and fiscal compliance: verify that the PDP is actually DGFiP-certified (up-to-date list on impots.gouv.fr) and has responsive French-speaking support for compliance questions.

Legal archiving: electronic invoices must be archived for 10 years (fiscal prescription period). Check that the PDP offering includes evidential-value archiving.

Beyond the regulatory constraint, e-invoicing delivers measurable gains:

• Payment terms: secure, timestamped transmission reduces disputes over receipt dates and speeds up settlements.
• Accounting automation: a structured invoice integrates directly into the accounts without re-keying, reducing errors and monthly closing time.
• Automatic VAT return preparation: data transmitted via the PDP feeds the DGFiP pre-declaration, simplifying tax administration.
• Reduced fraud risk: every invoice is traced and authenticated, reducing attempted fraud by false suppliers.
• Real-time visibility: tracking invoice status (issued, received, settled) becomes automated.

A Paris-based consultancy generating 2 million euros in annual revenue and issuing approximately 500 invoices per month illustrates the compliance challenges well.

Starting position: invoicing via a mid-range ERP system, invoices sent as PDF by email, archiving in a shared network folder.

Compliance steps supported by Hayot Expertise:

1. Audit of existing flows (2 weeks): mapping VAT-registered French clients, identifying B2C and international B2B flows for e-reporting, checking mandatory information on current invoice templates.
2. PDP selection (1 week): after comparing three solutions compatible with the existing ERP, Pennylane chosen as the primary PDP for its dual function (accounting + e-invoicing) and documented API.
3. Configuration and testing (3 weeks): setting up mandatory data fields (SIREN, VAT reason, Factur-X EN 16931 profile), issuance and receipt tests with pilot partners, e-reporting flow validation.
4. Team training (2 days): training of finance and admin staff on new issuance processes, status monitoring, and handling rejected invoices.
5. Go-live and monitoring: production launch in June 2026, with monthly compliance monitoring by Hayot Expertise.

Total cost: Pennylane subscription 35 euros per month + 2,200 euros one-off for ERP integration and testing. Estimated payback under one year through elimination of re-keying and reduced payment times.

Key steps to plan before 1 September 2026:

• Map your invoicing flows: identify your French VAT-registered clients and suppliers (e-invoicing scope) and your B2C / international flows (e-reporting scope).
• Check mandatory information on your current invoice templates (SIREN, VAT exemption reason if applicable, banking details).
• Choose a DGFiP-certified PDP compatible with your management software or ERP.
• Negotiate the technical integration with your software publisher or IT provider.
• Train your teams on new issuance, receipt and status-tracking processes.
• Set up evidential-value archiving for electronic invoices (10 years).
• Schedule tests with your main clients and suppliers before the deadline.
• Plan e-reporting for your B2C and international flows in parallel.

Three points recur regularly in the client files handled at Hayot Expertise.

First, the receipt obligation from 1 September 2026 is often overlooked in favour of the 2027 issuance date. Being unable to receive an electronic invoice from a large-company supplier will create real commercial friction from autumn 2026 onwards.

Second, the PDP choice must not be made in isolation: it should be coordinated with your accountant and your software publisher. A PDP that is technically incompatible with your ERP generates integration costs that cancel out the expected gains.

Third, the reform is an opportunity to revisit the entire invoicing process: mandatory information, payment terms, reminders, bank reconciliation. SMEs that approach compliance as an accounting transformation project — rather than a technical constraint — emerge with better-managed cash flow.

Hayot Expertise supports business owners, SMEs and self-employed professionals in Paris through every step of e-invoicing compliance: flow audits, PDP selection, coordination with publishers, configuration of mandatory data fields and team training.

For a consultation tailored to your situation, contact our team. We work in Paris and the Ile-de-France region, with remote support available for businesses outside the area.

This article is provided for informational and educational purposes only. It does not replace a personalised analysis of your situation by a qualified professional. Tax and regulatory rules evolve; always check current legislation before making any decision.