The reforms will of course provide real time knowledge of business activities to the French tax administration but also aims to:
- Reduce administrative burdens;
- Simplify VAT obligations by pre-filling VAT declarations; and
- Improve the detection of fraud.
Based on the proposals companies subject to VAT in France must issue, transmit and receive invoices in electronic form in their transactions with other persons subject to VAT and transmit the invoicing data to the French tax authorities. In addition they must transmit additional transactional data (e.g. B2C transactions) through e-reporting.
Companies will be able to choose to use a partner platform (if authorized) of directly use the public invoicing portal (Chorus Pro).
The new system will be rolled out in phases taking into account the size of the companies between July 1, 2024 and January 1, 2026. E-invoicing and e-reporting follow the same roll out schedule.