Electronic Invoicing in France: A Guide for Businesses in 2026

Electronic invoicing is gradually becoming a legal requirement for French businesses, as part of an ambitious reform aimed at modernizing trade, reducing VAT fraud, and simplifying tax returns. Driven by Article 153 of the 2020 Finance Law, this transition affects all VAT-registered entities, whether large corporations, SMEs, or micro-enterprises. Beyond regulatory compliance, this development represents a strategic opportunity to automate administrative processes, reduce costs, and improve transaction traceability.

This guide details the challenges, deadlines, implementation steps and best practices for integrating electronic invoicing into an ERP environment, particularly with Microsoft Dynamics 365 Business Central.

Understanding the reform and its implications

1. The objectives of electronic invoicing

The reform of electronic invoicing in France responds tothree main objectives:

• Combating VAT fraud: In 2022, VAT fraud was estimated at between €15 and €20 billion per year in France. Electronic invoicing allows for real-time monitoring of transactions, thus reducing opportunities for fraud.
• Reducing administrative costs: Manually processing a paper invoice costs on average between 10 and 30 euros per document (source: FEI). Automation reduces this cost by a factor of 5 to 10, while also limiting human error.
• Simplifying tax returns: Eventually, the tax authorities will pre-fill VAT returns from data transmitted electronically, thus reducing the administrative burden for businesses.

This reform is part of a European approach, with standards such as PEPPOL (for cross-border B2B exchanges) and Factur-X (hybrid PDF + XML format, widely adopted in France and Germany).

2. The schedule of deadlines

The implementation of the reform follows a phased schedule, adapted to the size of the companies. Here are the key dates to remember:

Electronic invoicing deadline schedule

• September 1, 2026 - Mandatory: Mandatory receipt of electronic invoices + Mandatory issuance of electronic invoices for large companies (GE) and medium-sized companies (ETI). The obligation to receive electronic invoices applies to all companies (SMEs, VSEs, GE, ETI).
• September 1, 2027 - The obligation to issue electronic invoices concerns SMEs and VSEs, including micro-enterprises.

Preparing your ERP: The essential steps

1. Update the reference data

Electronic invoicing requires impeccable data quality. Here are the mandatory fields to check and update in the ERP:

Customer and Supplier Data

• SIREN/SIRET: Mandatory for automatic addressing via the central directory managed by the State.
• Intra-Community VAT number: For trade with EU countries.
• Delivery address: Must be separate from the billing address if necessary.
• Transaction category: Specify whether the transaction involves the delivery of goods, the provision of services, or a combination thereof.

Tax Data

• VAT status: Indicate whether the company is subject to VAT, exempt, or subject to a special regime (e.g., reverse charge).
• Reporting regime: Specify whether the company uses the normal actual regime, the simplified actual regime, or the basic exemption regime.
• Membership in a VAT group: If the company is part of a single taxable person, this must be indicated.

2. Choose a Partner Digitalization Platform (PDP)

Since 2024, the State no longer offers a direct routing service via the Public Billing Portal (PPF). Companies must now use a PDP (now called an Approved Platform - PA) to exchange their invoices.

Role of PDPs (PAs)

The PDPs have the mission of:

• Receive and issue electronic invoices on behalf of companies.
• Check the conformity of the invoices (format, mandatory data, signature).
• Send the invoices to the PPF (for the tax administration) and to the final recipient.
• Ensure legal archiving for 10 years (legal obligation).

Criteria for Choosing a PDP

Here are theessential criteriato select the platform best suited to your needs:

• Official registration: Verify that the PDP is certified by the DGFiP (official list).
• ERP integration: Favor PDPs with a native connector for Business Central (e.g., Continia, Yooz, B2B Router, Storecove).
• Supported formats: Ensure that the PDP supports Factur-X, PEPPOL, and CIUS (for exchanges with the administration).
• Pricing: Compare costs (subscription, unit price, integration fees).
• Support and guidance: Opt for a PDP with technical support in French and clear documentation.

The Most Suitable PDPs for Business Central

Here is the list of Partner Document Management Platforms (PDPs) compatible with Microsoft Dynamics 365 Business Central, with their main features:

• Continia (Document Output + Document Capture): Natively integrated with Business Central, Continia stands out with its two add-on modules: Document Output: Enables the automatic issuance of electronic invoices in Factur-X, PEPPOL, and UBL formats, with direct conversion from invoices created in Business Central. Document Capture: Automates the receipt and processing of supplier invoices using advanced OCR technology, thus reducing manual data entry errors. Continia leverages partner PDPs like B2B Router for transmission to PPF, at no additional cost for small volumes.
• Yooz: Specializing in purchasing process automation, Yooz offers integration with Business Central for receiving and processing supplier invoices. It supports Factur-X and PEPPOL formats and provides OCR and validation tools to automate data entry and reduce errors. Yooz is particularly well-suited for companies looking to optimize their supply chain.
• TEDD by Flowwa: A pragmatic and economical solution, TEDD by Flowwa is particularly well-suited to small businesses (up to 150 invoices/month). It stands out for its easy integration with Business Central and its real-time flow monitoring. TEDD enables efficient management of rejected invoices and redelivery, while ensuring full compliance with French legal requirements.
• Esker: An international platform specializing in business process automation, Esker offers integration with Business Central via APIs or dedicated connectors. It supports Factur-X and PEPPOL formats and provides extensive features for managing incoming and outgoing invoices, as well as for e-reporting. Esker is ideal for companies with multi-country needs or complex workflows.
• B2B Router: Recommended for businesses using Business Central, B2B Router offers a native connector available directly on Microsoft AppSource. It enables the sending and receiving of electronic invoices in Factur-X, PEPPOL, UBL, and CII formats, with full interoperability with the Peppol network. Free for small volumes (starting at 600 documents/month), this PDP is ideal for SMEs and mid-sized companies seeking simple integration that complies with PPF (Public Billing Portal) requirements.
• Storecove: A French solution specifically designed to meet the needs of businesses in France, Storecove offers direct integration with Business Central via an AppSource extension. It supports Factur-X and PEPPOL formats and provides integrated legal archiving as well as invoice status tracking (received, registered, approved, paid). Storecove is particularly well-suited for companies seeking full PPF compliance and simplified invoicing workflow management.
• Quadient: A long-established player in invoice digitization, Quadient offers a robust and compliant solution for Business Central, with comprehensive support. While integration is generally achieved via API or third-party connector, Quadient provides advanced features for managing complex workflows, particularly for large companies or those with specific e-reporting and legal archiving requirements.
• DocuWare: A complete document management solution, DocuWare integrates with Business Central for legal archiving and managing electronic invoicing workflows. It supports Factur-X and PEPPOL formats and offers full document traceability with advanced search and compliance features.
• Pennylane: A new player in the PDP market, Pennylane offers a modern and intuitive solution tailored to startups and SMEs. It integrates with Business Central via API and supports the Factur-X format. Pennylane distinguishes itself through its simplified user interface and personalized support for companies transitioning to e-invoicing.

Electronic invoicing processes: Operation and obligations

1. Incoming flow: From the PDP to the ERP

When a company receives an invoice from a supplier, the process follows these steps:

• The supplier sends the invoice to their PDP (or directly to the customer's if both companies use the same platform).
• The customer's PDP receives the invoice (in Factur-X, PEPPOL, etc. format) and performs compliance checks (format, mandatory data, signature).
• The invoice is transmitted to the customer's ERP via: API (most common method) / EDI (for large companies with complex flows).
• The ERP system integrates the invoice into the Purchasing module and triggers a validation workflow:

Received: The invoice is available in the system.

Recorded: The invoice is imported into the ERP.

Approved / Payment made: Validation by the accounting department.

Cashed: Mandatory status for service provision (to be transmitted to the supplier).

Legal obligation: The company must update the statutes in real time to inform the supplier.

2. Output flow: From the ERP to the PDP

To issue an electronic invoice, the steps are as follows:

• Creating the invoice in the ERP (e.g., Business Central, Sales module).
• Format selection: Factur-X (recommended for France) / PEPPOL (for international clients).
• Sending the invoice to the PDP: The ERP generates a structured file (XML for Factur-X or PEPPOL). The PDP verifies compliance (mandatory data, format, signature).
• Invoice transmission: To the PPF (for tax administration) within 24 hours. To the end customer (via their PDP or directly if compatible).
• Automatic archiving: The invoice is stored in the ERP with proof of filing (time stamp, acknowledgement of receipt).[NT]💡 Example with Business Central + Yooz:

• An invoice is created in Business Central.
• Yooz (which acts as PDP) converts the invoice into PEPPOL and transmits it directly to the PPF (Public Billing Portal) and to the customer.
• The invoice is automatically archived in Business Central with proof of filing.

E-Reporting: An essential complement to electronic invoicing

E-reporting complements electronic invoicing by covering transactions not eligible for e-invoicing:

• Sales to individuals (B2C).
• International transactions (export/import outside the EU).
• Specific operations (e.g., VAT self-assessment).

1. Deadlines and Obligations

E-reporting deadlines

• September 1, 2026: start of mandatory transmission of e-reporting data (B2C sales and international transactions) for Large Enterprises (LE) and Medium-Sized Enterprises (MSE).
• September 1, 2027: extension of the obligation to transmit e-reporting data to Small and Medium Enterprises (SMEs) as well as Very Small Enterprises (VSEs).

2. Data to be Transmitted

For B2C sales:

• Amount excluding VAT and VAT by rate.
• Date of the transaction.
• Invoice number (if applicable).

For international transactions:

• Amount excluding VAT.
• Country of destination.
• Intra-Community VAT number (if applicable).

Frequency:

• Monthly for the standard actual scheme.
• Every 10 days for companies on the normal actual regime (transaction reporting).

Best practices for a successful transition

1. Anticipate changes

• Start now: An electronic invoicing project takes 3 to 6 months (data cleaning, PDP selection, testing, training).
• Prioritize critical flows: Start with customer invoices (B2B), then extend to supplier invoices and e-reporting.

2. Automate as much as possible

• Use OCR (e.g., Continia Document Capture) to automate the entry of supplier invoices.
• Set up workflows to automatically validate compliant invoices.
• Integrate archiving into the ERP to avoid duplicates or data loss.

3. Monitor performance

Establish key indicators to guide the transition:

• Rejection rate: Target < 2%.
• Delivery time: Target of next day delivery for 98% of invoices.
• PDP availability: Target ≥ 99.5%.
• Processing time: Reduce invoice management time by 50%.

Pitfalls to avoid

• Neglecting data quality: An incomplete customer/supplier database is the primary cause of rejected electronic invoices.
• Choosing a non-certified PDP: Always check the registration on the official list of the DGFiP.
• Forgetting about e-reporting: Even if a company is not yet concerned with issuing electronic invoices, e-reporting can already be applied to certain transactions.
• Underestimating costs: Consider integration fees, PDP subscriptions, and training costs.

Conclusion: An inevitable and beneficial transition

Electronic invoicing is not just a legal obligation; it represents a major opportunity for businesses. By modernizing their processes, they can reduce administrative costs, improve traceability, and gain a competitive edge.

Next steps for businesses

• Audit the data: Verify that the SIREN, VAT numbers, and addresses are up to date.
• Choosing a PDP: Opt for a certified solution, integrated with the ERP, and adapted to the volume of invoices.
• Test in a test environment: Send test invoices to validate compliance.
• Training the teams: Raising awareness among employees about the new processes.
• Deploy gradually: Start with customer invoices, then extend to supplier invoices and e-reporting.

Useful Resources

• Official list of registered PDP (PA) (DGFiP)
• Microsoft Documentation: E-Documents in Business Central
• Factur-X Guide (French format)
• Public Billing Portal (PPF)