Faced with a VAT gap of nearly €13 billion, France is introducing mandatory e-invoicing for business-to-business (B2B) transactions from 2023, as well as e-reporting of additional data types. Applying to all companies established or, for e-reporting, VAT-registered in France, this new mandate is complex. It will also require significant planning.
According to the ICC, businesses will need at least 12-18 months to prepare for such continuous transaction control (CTC) mandates so it’s clearly important to start planning now to prepare for the change.
This infographic provides answers to your pressing points surrounding the mandate including:
- What your company needs to do to comply with the new mandate
- When your business needs to comply by
- Other key information surrounding the mandate requirements
- How Sovos can help
DOWNLOAD THE INFOGRAPHIC
Mandate aim
The aim of the new mandate is to increase efficiency, cut costs and fight fraud via access to more transaction data. All B2B invoices will need to be transmitted through a central platform. This is either directly or via registered service providers connected to the platform.
The new mandate will provide the French tax authority with access to all VAT relevant data related to B2C and B2B transactions, so it’s crucial to adjust your business systems and processes to avoid penalties and fines.
France is the latest country to adopt CTCs, as tax authorities across the world look to gain greater insight and close the VAT gap. The proposed requirements come into effect during the years 2023-2025.
France e-invoice and e-reporting rollout dates
1 January 2023: Large companies will be subject to the B2B e-invoice clearance and e-reporting mandate. There is no real-time transmission requirement for B2C and cross-border invoices. However there is an obligation to e-report these periodically so that the tax administration has full visibility. All companies must accept e-invoices under the new mandate from this moment onwards.
1 January 2024: E-invoice sending and the e-reporting obligations will apply for medium-sized companies.
1 January 2025: All companies will be in scope of the mandate by 1 January 2025.
How Sovos can help
As France looks set to become the next country in Europe to introduce CTCs with its B2B e-invoicing and e-reporting mandate in 2023, it’s crucial that businesses prepare for and understand their new VAT obligations.
Sovos serves as a true one-stop-shop for managing all e-invoicing compliance obligations in France and across the globe. Sovos uniquely combines local excellence with a seamless, global customer experience.
Our scalable, end-to-end solution ensures e-invoicing and e-reporting compliance in France and additionally in 60+ other countries.
Sovos is purpose built for modern tax – an evolving, complex landscape in which global tax authorities are requiring increased visibility and control into business processes, in many cases at the transaction level.
Tax authorities around the globe have embraced digitization to speed up revenue collection and reduce fraud while closing tax gaps. This is the catalyst for companies to move complete, connected and continuous tax compliance software into their digital financial core.
