How e-Reporting Works in France
The tax reform undertaken by France includes a new e-Reporting system to declare accounting and tax information for companies.
The new e-Reporting system was inspired by Spain, Portugal and Russia and requires companies to declare a series of electronic tax reports depending on their business sector.
Table of contents [Hide]
What is e-Reporting?
e-Reporting is a declaration system complementary to electronic invoicing declaration which consists of the declaration of information on B2C and international B2B transactions.
How does e-Reporting work?
e-Reporting varies depending on the type of transaction. Generally speaking, companies will send transaction information to their Dematerialization Platform, called Platforme de dematerialization parternier (PDP). The Dematerialization Platform performs the relevant checks required by the DGFiP. After the transaction verification process, the PDP reports the necessary fiscal information to the DGFiP through the Public Invoicing Platform.
e-Reporting Lifecycle
The e-Reporting flow includes the record keeping of all the stages that the information passes through, from receipt by the dematerialization platform to its declaration to the national platform. This allows intensive monitoring of the life cycle of the transmission of the declarations.
The DGFIP recommends that dematerialization platforms keep record of the following statuses:
- Received by the platform
- Accepted by the platform
- Partially accepted
- Rejected
- Provision of administration
Which Companies Must do e-Reporting?
All companies that conduct international B2C and B2B transaction. Some foreign companies that are not established in France may be subject to the e-Reporting obligation, provided that the transaction they carry out is carried out in France and subject to VAT.
Implementation Timeline
The e-Reporting timeline follows the same chronology as the B2B electronic invoicing timeline. As of 2023 all companies must comply with the DGFiP’s e-Reporting mandate:
- On January 1st 2024 for large companies.
- On January 1st 2025 for medium companies.
- On January 1st 2026 for SME’s.
What Information Must I Declare Through the e-Reporting System?
The transactions that must be declared through e-Reporting are detailed in Article 290 of the General Tax Code.
Information Related to International B2B Transactions
Information related to the following transactions must be reported:
- Intracommunity deliveries of goods and services.
- Exports of home goods and products for the benefit of companies outside of the EU.
- Operations with overseas territories.
The information to be reported will be the same as in the electronic invoice, except that the tax ID of the companies will be the intracommunity VAT code for transactions in the EU and a different code for transactions outside of it.
The reporting system is the same as the electronic invoice and will be sent through a dematerialization platform to the public platform.
Information Relating to B2C Transactions
Inspired by countries like Spain, the DGFiP has also proposed the tax report for B2C operations. The proposal includes three scenarios depending on a company’s IT infrastructure.
If the company has a POS system
The company must declare a summary of all the issued tickets for the day called, Ticket Z.
If the company issues electronic invoices
It can issue the required information to the administration through the same method used by the B2B electronic invoice, without having to issue to the final client.
If the company has no IT systems
It must send a summary of its weekly or monthly operations.
e-Reporting Declaration Format
The e-Reporting declaration may be issued in the same standard as the electronic invoice: UBL, CII or Factur-X.
Frequency of the e-Reporting
The reporting frequency of the reports depends on the tax regime the company falls under.
- A weekly report must be issued within 4 days of the end of the week for companies that fall under the normal tax regime.
- A monthly report must be issued within 7 days before the end of the month for companies under a special tax regime.
EDICOM – A Global e-Invoicing Partner in France
EDICOM is a B2G electronic invoicing provider and is part of the Direction Générale des Finances Publiques (DGFiP) and Agence pour l'Informatique Financière de l'Etat (L'AIFE) work groups for the development of a new B2B and B2C electronic tax system.
With more than 25 years of experience as a global technology partner, EDICOM offers a centralized and comprehensive e-invoicing and vat compliance solution that will allow you not only to dematerialize your invoices and e-Reporting statement in France but anywhere in the world.