Inter-company e-invoicing is a major reform that will transform the way construction companies manage their transactions. This French government initiative aims to digitize the entire invoicing process. It will have a significant impact on construction companies, large and small, and this guide is designed to help you understand and best navigate this transition.
The Objectives of the Reform
The reform mainly aims to:
- strengthen company competitiveness by reducing the administrative burden associated with creating, sending, and processing paper invoices,
- facilitate VAT declarations through a pre-fill system,
- fight tax fraud
- allow the government to have real-time knowledge of company activity.
The benefits for construction (BTP) companies
The e-invoicing reform offers many tangible and significant benefits for construction (BTP sector in France) companies.
- Simplified management of partners and stakeholders: With e-invoicing, it becomes easier to manage a multitude of partners and small stakeholders. This digital solution unifies the invoicing process by making transactions more transparent and organized.
- Improved document validation: One of the major challenges in the construction (BTP) sector is document validation. Automated e-invoicing reduces manual errors and accelerates the validation process by making invoices available in real time for approval.
- Reduced invoice sending delays: Thanks to e-invoicing, invoices can be sent instantly, thus eliminating delays that can occur with paper invoicing. In addition, the process is much more efficient, saving time and money.
The Deployment Schedule
The implementation of this reform will be progressive based on company size.
- From July 1, 2024, all companies must be able to receive electronic invoices, and large enterprises must be able to issue them.
- From July 1, 2025, mid-market enterprises must comply with electronic invoice issuance.
- From January 1, 2026, the obligation to issue electronic invoices will come into effect for micro-businesses and SMBs.
Choosing an E-Invoicing Platform
The obligation to receive electronic invoices requires choosing an intermediary platform. You will have a choice between two options:
- the free Chorus Pro public invoicing portal, currently used for operations with the State or local governments
- a Partner Dematerialization Platform (PDP) registered by the tax administration.
Note that not all dematerialization operators will be partners of the administration. To be authorized to transmit invoices between companies, they must be registered by the tax administration.
Preparing your Company
To prepare for this transition, we recommend that you follow these different steps:
- Get informed about the reform through the documentation available on impot.gouv to fully understand the impacts and obligations for your company.
- Analyze your activity by identifying the various functions of the company concerned and mapping incoming and outgoing invoice flows.
- Engage internally to mobilize the resources and energy necessary for the transformation. Set up a project team dedicated to the reform and involve financial and accounting services so they prepare to receive and send electronic invoices.
- Question the available solutions to, on the one hand, comply with the reform's obligations, and on the other hand, take advantage of the new tools and processes you will implement as part of this transformation in order to optimize the performance of your financial management.
- Select your e-invoicing platform. Be careful, no rush — the first PDP platforms will be registered starting July 2024. Take the time to study the question and identify the appropriate solution for your needs.
Conclusion
This reform represents a significant transition toward digitization and the modernization of business processes. While it may seem intimidating at first glance, adequate preparation and a clear understanding of the requirements can facilitate its implementation. Don't forget that the goal of this reform is to improve efficiency, reduce costs, and strengthen your company's competitiveness. By embracing these changes, you will position your company in a position of strength for the future. The platform developed by Flowie reinvents accounts payable and receivable management to meet the reform's requirements while allowing you to improve and accelerate your accounting and financial processes.