Compulsory electronic bills for the self-employed

Electronic Billing Concerns Companies subject to VAT (i.e. all self-employed) It will become mandatory for everyone Entrepreneurs from July 1, 2024.

This commitment may seem complex and stressful…but it will only happen in two years…and gradually.

It can ultimately save you time and ease the process of your sole proprietorship.

FNAE will accompany you step by step in order to prepare for its implementation without stress!

Here are the main lines of this fix.

Are you affected by this commitment?

All businesses without exception are affected by the reform, but micro-enterprises will be the last affected.

The repair relates to invoices and certain transaction data if there are no invoices.

Reform matters to all companies

The obligation of electronic invoices for companies subject to VAT extends to All self employed, Including those who are not Not responsible for VAT.

Your business: VAT or not?

From its inception, any business or company Subject to value added tax. Thus, your auto business is subject to VAT and affected by the repair to dematerialize invoices.

Subject … but not responsible

By default, the self-entrepreneur (sole proprietorship under the partial social and partial tax system) is free of VAT, that is, it is not not owe value added tax. So everything he bills except for VAT is expressed up to a certain turnover limit, which varies according to his activity.

Irresponsible: Exceptions

A self-employed company is not responsible for VAT Unless it exceeds the size of its business 94,300 euros in sales (110,000 euros abroad) or 36,500 euros in services (60,000 euros abroad).

In these cases, the individual entrepreneur becomes liable for VAT as of the first day of the month in which his turnover exceeded the thresholds.

Find out everything about your business and VAT, discover our Facebook post

Electronic Invoices: Current Obligations for Freelancers

Some car companies are already obligated to submit invoices electronically.

State and local authorities

Since January 1, 2020, the Small businesses that bill the state or local authorities They are already obligated to issue invoices electronically.

Certified billing software

In addition, spontaneous entrepreneurs who are responsible for VAT must use an approved quotation and invoicing software (Anti-fraud law since January 1, 2018).

Gradual implementation of reform: the horizons of 2024 and 2026 for individual enterprises

The first deadline for self-entrepreneurs will be simple: all you have to do is be able to to receive Their invoices are in electronic form as of July 1, 2024.

Only from January 1, 2026 (after large companies and intermediary companies) will self-entrepreneurs have to problem their invoices electronically.

Unlike a paper invoice or pdf invoice, the content of which may differ or may be incomplete, the electronic invoice will be standardized and will include all the necessary data.

All you need to know about the electronic billing system

An electronic invoice (or electronic invoice) is an invoice that is created, issued and received in electronic form.

Are you now obligated to issue invoices?

Any self-employed person must draw up an invoice and deliver it to his client in the following cases:

When Customer is business :

When The customer is an individual :

  • If the customer asks for an invoice;

  • If the sale is done remotely;

  • If the provision of the service exceeds 25 euros

Standard Invoice Editing

Do you complete your bills perfectly? The invoice must be prepared in duplicate and kept for at least 10 years.

It should include several mandatory legal notices.

Don’t forget to add mention of individual business or emotional intelligence, mandatory since May 15th!

  • SIRT or SIREN;

  • invoice number ;

  • program history;

  • Customer ID

  • product with indication, address and price;

  • Total amount;

  • Recall: exemption from VAT or VAT;

  • Payment deadline.

Find out the mandatory information on the invoice

Get invoicing software

Thus, all self-employed or self-employed persons by 2026 will be required to equip themselves with software that will make electronic invoicing possible.

Note: FNAE is already engaged in electronic invoicing work with DGFIP in order to integrate private business privacy. Soon, the Auto Entrepreneurs Consortium Bidding and Invoicing solution will include the software interface (or API) needed to implement mandatory electronic invoicing.

Compulsory electronic invoicing: the pros and cons for individual entrepreneurs

Dematerialization: Advantages of the Self-Employed Entrepreneur …

  • Reducing the administrative burden on companies … thus increasing their competitiveness;

  • Simplify the filing and storage of invoices;

  • Simplification of VAT reporting obligations by pre-filling forms;

  • reduce payment times;

  • Improve transportation and communication with management, customers and suppliers

… and disadvantages for a car entrepreneur

  • Implementation of a new operating system.

  • Additional costs related to billing software installation

Dematerialization: advantages for the state

  • easier detection of fraud;

  • Better knowledge of the company’s activity in real time

Do you know ? : Managing paper invoices is on average ten times more expensive than electronic management (about 10 € per paper invoice versus 1 € per electronic invoice)

Transfer of transaction data to management: a legal obligation

The auto-entrepreneur must also transmit transaction data to the tax authorities (the process is called “electronic reporting”), even when this data does not require mandatory invoices.

For example, a merchant who sends a receipt to a specific customer after purchase is obliged to send the items of the transaction to the administration, even if he has not issued an invoice.

When is electronic reporting mandatory?

  • Sales to Individuals

  • international corporate sales;

  • sales of goods or services within the community;

  • exports made outside the European Union;

  • Operations carried out with overseas companies in France;

In which ER is not mandatory?

Transactions that benefit from VAT exemption from invoices are not affected by this obligation.

This exemption from advertising relates to:

  • Certain banking and insurance transactions;

  • medical and health benefits;

  • teaching services;

  • Transactions carried out by non-profit organizations

How are invoices and transaction statements issued and received?

2 options to choose from

The auto entrepreneur can choose between two platforms to receive and announce his invoices or electronic electronic reports.

  • Partner platform for dematerialization registered by the tax authorities for a renewable period of three years;

  • Or the Chrorus Pro public billing portal. It already works for commercial transactions between the private sector and the public sector.

Beware of scams!

Many partner dematerialization (PDP) platforms claim to be already recognized by tax authorities and offer a guarantee of transferring your data. This is a mistake !

To date, the PDP has not been legally recognized by the administration.

The first approvals will not take place until 2023.

Any other information could be a very sensitive attempt to recover your data (hacking, phishing, etc.).

to know

Fédération des autoentrepreneurs will offer an integrated solution (programming interface or API) via its estimation and billing software.

Failure to comply with the electronic billing obligation: What are the risks?

If the electronic billing obligation is not respected, the company will be subject to a fine of 15 euros per invoice (up to 15,000 euros per year, or 1,000 invoices).

If the electronic reporting obligation is not respected, the company will receive a fine of 250 euros per invoice (maximum 15,000 euros per year, i.e. 60 electronic reports).

for blogging

Owners of self-entrepreneurs working in the sector personal services Those who want their clients to benefit from the immediate tax credit should use an estimate and invoice solution linked to URSSAF services.

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