The upcoming switch to a new way of e-invoice reporting will bring challenges and opportunities to the whole French business landscape. Proposed solutions offer an array of options to companies small and big that want to get the most out of new solutions.
In essence the choice will be two-fold – you could pick between a regular dematerialization agent (OD) going manually through all the public invoicing tools, or an authorized, certified PDP platform with direct, streamlined access to your business partners and tax reporting authorities.
Are you wondering whether to choose a traditional OD or a certified PDP? Are you trying to determine which of them will be the most valuable for you? Read this article to discover the benefits of having a helping hand in the new world of tax reporting.
The new e-invocing & e-reporting environment
As of 1st of July 2024, France will begin introducing mandatory measures for e-invoicing and e-reporting. The initial phase will include an obligation for all French enterprises to accept any e-invoices for all B2B and B2C transactions, with more wide-ranging requirements coming into force in the following months. For example, the mandate to start e-reporting and issuing e-invoices for small and medium-sized enterprises is set for 1st of January 2025, with a similar requirement for very small enterprises scheduled for the following year, from 1st of January 2026.
To facilitate meeting these requirements, the authorities are set to launch a new public platform called The Public Invoicing Portal (Portail Public de Facturation or PPF). This platform will offer only basic services allowing fulfillment of obligations arising from e-invoicing and e-reporting regulations.
Enterprises might want to expand their processes, building on top of the PPF platform with the help of outside service providers specializing in supporting reporting activities. The current state of reform involves two categories of such entities:
- Registered private platforms (PDPs) are independent entities registered and approved by the tax authorities specifically for the purpose of providing direct reporting services in compliance with sector requirements.
- Dematerializing operators (ODs) offer document dematerialization services (including invoices) in a traditional capacity, required to participate in the new reporting system via the public portal (PPF) or an authorized PDP.
This ensures companies will have a choice in regard to dematerialization and tailoring their solutions to current processes and future needs.
Choosing between an OD and PDP
A registered private platform will allow safe, publicly registered and direct operation in all things PPF. Thanks to the authorization, PDP users will have access to a wide array of features greatly facilitating reporting and invoicing.
DIRECT INVOICE EXCHANGE
Thanks to the certification, the PDP will be allowed to process the invoices directly with other PDPs allowing a swift flow of documents between business partners using the private platforms, and eliminating the need for PPF involvement for invoice clearance.
PDP platforms are set to accept all previously used e-document formats and convert them into one of three mandatory formats (CII, UBL 2.1 or Factur-X) to ensure compliance with new norms. Moreover, when it comes to fulfilling reporting obligations, the PDP will (under certain conditions) be obliged to forward the tax authority only the relevant transaction data without converting the invoice itself. This will eliminate the need to introduce any new ERP software or processes to your company environment, while helping to streamline all of the procedures.
No matter what systems, formats or processes your business partners are using, the PDP will take care of converting and processing their documents in compliance with required standards.
The Public Invoicing Portal (PPF) allows reliable invoice routing thanks to maintaining a directory of possible invoice recipients. The registered platforms will take direct care of keeping your enterprises details up to date throughout the e-reporting and e-invoicing system’s directory, ensuring data security and reliability.
SEAMLESS REPORTING AND DATA EXTRACTION
Registered partners will be able to facilitate reporting the mandated B2C and international B2B transactions, and extract all the other relevant data required by the tax authority.
Just as before the entry into force of the e-invoicing mandate, the dematerialization operators (ODs) will be able to provide all the traditional dematerialization services. They will still be able to conduct digitization and conversion. However, without the relevant government certification in terms of e-invoices and e-reporting, ODs will have to rely on other certified platforms or go through the publicly available PPF. An OD will not be able to exchange your invoices directly with any other party, nor will it be able to provide the tax authority with required transaction data.
Comarch as a registered private platform (PDP)
Comarch has been a participant in the process of introducing the new e-invoicing system from the very outset. We have been taking part in a series of PDP registration workshops, gaining the legal and technical knowledge necessary for authorization as a registered platform. Thanks to participation in the processes leading up to setting up the system, we intend to gain invaluable experience to provide the best level of service as a PDP right from the start.