When the French Tax Authority published its report last fall, unveiling the continuous transaction control (CTC) plans for France, we questioned whether it would be possible to finalise all the details of this system in less than a year, to allow sufficient time for businesses to adapt.
Although the French Treasury (DGFiP) has made good progress, including holding multiple multi-stakeholder workshops, they have come to the conclusion that the initial timelines set up were too optimistic. In an announcement on 15 September by the French Council of Ministers, the introduction of the CTC system has been postponed by 18 months.
According to the revised calendar:
From July 1, 2024:
- All French companies will have to accept e-invoices under the CTC regime.
- Issuing e-invoices in lieu of paper through the central platform or its associated service providers will become mandatory for the largest enterprises (some 300 entities), as well as e-reporting of B2C and cross-border transactions not covered by the said e-invoicing mandate.
From January 1 2025:
- The same e-invoicing issuing and e-reporting obligations will apply to some 8000 mid-sized companies – “Entreprises de taille intermédiaire”.
And lastly, from January 1 2026:
- The obligations will apply to the remaining four million medium and small companies.
This extended timeline is a welcome opportunity for companies, giving them more time to better understand and prepare for the far-reaching consequences of this reform for their business processes, IT systems and tax compliance strategy.
For more information on what the delay means, and what changes you can expect to the French e-invoicing reform, make sure to join our next webinar on this topic, or subscribe to updates from our team of Regulatory Experts.
Register for our upcoming webinar, ‘Get ready for France’s E-invoicing mandate’ on Thursday 7 October 2021, hosted by Sovos’ VAT compliance experts.