France, one of the EU’s largest economies, is introducing Continuous Transaction Controls (CTCs) by implementing a B2B e-invoice clearance and e-reporting obligation, to be rolled out from 2023. With these comprehensive requirements, alongside the B2G e-invoicing obligation that is already mandatory, the government aims to increase efficiency, cut costs, and fight fraud.
The basis of the French proposal is that all B2B invoices will be transmitted through a central platform, or via certified service providers connected to that central platform. This e-invoice clearance will lay the foundation and provide the tax authority with data relating to any domestic B2B transaction.
In order to effectively be able to combat fraud, the tax authority will need access to more transaction data. Therefore, data that the tax authority will not receive as part of the e-invoice clearance process – notably B2C invoices and cross-border invoices that will not be subject to a domestic French mandate, as well as certain payment data – will be subject to the complementary e-reporting obligation.
So the tax authority will receive all data relating to B2C and B2B transactions (including certain payment data) by these two measures: the e-invoice clearance mandate combined with the e-reporting obligation.
1 January 2023: Large companies will be subject to the B2B e-invoice clearance and e-reporting mandate. B2C and cross-border invoices won’t need to be cleared but will need to be reported so the tax administration has full visibility. All companies will be mandated to accept e-invoices.
1 January 2024: Obligations will apply for medium-sized companies.
1 January 2025: The smallest companies will enter into scope All companies will be in scope of the mandate by 1 January 2025.
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