France – Rollout of Digital Tax Reporting 

The French government is one of the main driving forces within the EU in the continuous modernization of tax administration systems. As one of the top three EU economies, it is facing many challenges in developing tax monitoring requirements aligned with new business ecosystems. 

Over the last few years, the country has been preparing for significant reforms to the invoicing system and tax reporting requirements for domestic businesses. The introduction of the mandatory B2B e-invoicing regime for all domestic VAT-registered companies has been a key point of discussion in the digital transformation of the French tax system. 

Given that the e-invoicing reform was under the spotlight, many voices have deliberately neglected to devote adequate attention to the second (by chronology) major reform of the French tax system: electronic reporting. 

Electronic reporting(e-reporting) is an integral and indelible part of the nationwide tax reform. The e-reporting, put simply, is a complementary set of requirements that local businesses must meet alongside the e-invoicing obligation to be fully VAT-compliant from the moment the system comes into effect. 

E-reporting, as emphasized above, complements e-invoicing. Domestic businesses that need to adhere to the e-reporting requirements are, in a nutshell, mandated to report transactional information for specified transactions directly to the tax authority. 

Under the e-reporting obligation, specified taxpayers must report B2C transactions (with end customers and non-tax-registered businesses), export transactions, and intra-EU transactions in near real time to the tax authority. 

The e-reporting mandate will be introduced gradually, in two main stages: 

• September 1, 2026, marks the entry into force of e-reporting for large and mid-sized companies.
• September 1, 2027, extends the e-reporting requirement to other taxpayers