As part of the 2020 Finance Law, the French government has decided to make the switch to mandatory electronic invoicing from 2024 for all companies subject to VAT. The obligation of electronic invoicing, or e-invoicing, is accompanied by an obligation to transmit transaction data, called e-reporting. This reform is based in particular on the establishment of a Public Invoicing Portal (PPF) through which all invoicing flows will pass. All French companies must be able to receive electronic invoices as soon as the reform comes into force, i.e. July 1, 2024. The obligation in issue is progressive and depends on the size of the company:
- July 1, 2024 for large companies;
- January 1, 2025 for ETIs;
- January 1, 2026 for SMEs and VSEs.
To communicate this data, it will be necessary to send it to the PPF in one of the authorized formats (Factur-X, XML UBL or XML CII). This is where the Y pattern appears.
As you can see, different actors are appearing: Dematerialization Operators (OD) and Partner Dematerialization Platforms (PDP). Depending on your business needs, you will probably choose one of these platforms. We will see just after what their characteristics are so that you can choose between the different possible electronic invoicing solutions. To begin, simply know that TX2 CONCEPT is positioned as a Partner Dematerialization Platform within the framework of the 2024 obligations.
What is the difference between an OD and a PDP?
What is a Partener Dematerialization Platform ?
PDPs are invoice dematerialization providers fulfilling specifications drawn up by the DGFIP and identified in the PPF directory. They guarantee tax and legal requirements. In particular, they have the ability to connect point-to-point with each other and to manage additional formats, such as EDIFACT. They are responsible for transmitting the e-invoicing and e-reporting data expected by the PPF. We will see in more detail later the obligations incumbent on these platforms and why use their services.
What is a Dematerialization Operator ?
The ODs also offer solutions for dematerializing invoices, but which are not certified by the DGFIP. ODs do not have the ability to directly transmit an invoice to its recipient, unlike PDPs. They can only trade with the PPF. Their role is to allow companies to send their invoices to the PPF in one of the authorized formats. In reception, they will help them retrieve their invoices from the PPF and manage their processing.
What does the Public Billing Portal offer?
It should not be forgotten that the Public Invoicing Portal will offer a minimal service for the management of dematerialized invoices. This solution is only relevant for companies with a low volume of invoices to process. However, it will enable the global adoption of electronic invoicing.
Partner Dematerialization Platforms: what are they for?
As PDPs are platforms registered with the DGFIP, they will have to comply with various obligations from 2024: Regarding the issuance of invoices in the scope of French B2B, they must:
- Transmit their customers' electronic invoices to their recipient's PDP or directly to the PPF if their partner is not equipped with a partner platform;
- Extract and transmit mandatory invoice data to the PPF.
When receiving invoices in the scope of French B2B, they must:
- Receive invoices from the PDPs of their client's suppliers or retrieve dematerialized invoices from the PPF.
Regarding French B2C and international B2B, they will be required to transmit e-reporting data on behalf of their customers. Finally, PDPs will:
- Perform compliance checks on e-invoicing and e-reporting;
- Manage e-invoice processing statuses;
- Update PPF directory information on behalf of their clients.
What are the benefits of choosing a PDP?
You are certainly wondering “why should I choose a PDP? ".
First of all, one of the main advantages is to maintain your existing system as much as possible. PDPs are the only platforms capable of managing formats other than those authorized on the PPF. Therefore, if you historically use other formats, such as EDIFACT for example, you will need to choose a partner platform to maintain your current processes. This will allow you to continue managing your business data.
Concretely, in issuance, your PDP will send your invoice in EDIFACT to your partner's PDP and transmit the mandatory data expected by the PPF in one of the authorized formats, in parallel. In reception, it will receive your dematerialized invoices either via the PDP of your supplier, or via the PPF. It will then take care of translating them into the format expected by your management software.
The Partner Dematerialization Platforms, being registered with the DGFIP, guarantee compliance with legal constraints. They allow you to respond to all aspects of the reform, whether on electronic invoicing or the transmission of e-reporting, because they have the obligation to control the compliance of flows. It guarantees the security of your data.
Finally, choosing PDP expert in EDI, such as TX2 CONCEPT, allows you to have a single partner capable of managing the dematerialization of all your processes, from ordering to invoicing.
Why choose TX2 CONCEPT as a Partner Dematerialization Platform?
At TX2 CONCEPT, we have been EDI experts since 1991 and specialists in the dematerialization of invoices for more than 15 years. Our expertise in the subject and our desire to meet the regulatory compliance needs of our customers, naturally led us to position ourselves as PDP for 2024.
This registration will allow all our customers who currently exchange using EDI to maintain their existing processes as much as possible and thus facilitate the adoption of mandatory electronic invoicing.
We have already started the process to be registered with the DGFIP. We actively participate in their meetings as well as in the working groups organized by the FNFE-MPE. Our company should also obtain ISO 27001 certification in the spring.
It is expected that the filing of our application for registration will be made as soon as applications open, i.e. in the 3rd quarter of 2023. This will allow us to obtain a provisional registration number. We will then have a compliance audit to submit to the tax authorities before the end of the first year to validate this registration. This will be for 3 years renewable.
Our strategy being based on the continuous evolution of our solutions, our TX2 Cloud PDP platform is already available. We have been starting since the beginning of the year to onboard clients on this new platform.
PDP platform for electronic invoicing: TX2 Cloud
Our electronic invoice management platform, TX2 Cloud, enables automated invoice processing. It is able to manage all types of formats: EDI (EDIFACT, X12, TRADACOM standards, etc.), Factur-X, PDF, XML, etc. This solution is certified by GS1 France. GS1 being a standardization organization specialized in retail.
We are also able to meet the legal constraints of each country. We can, for example, allow you to interact with the SDI, the Italian e-invoicing platform.
Legacy of our EDI expertise, we are interoperable with many platforms, including future PDPs, as well as with interoperability networks. We also benefit from a certain ERP expertise which allows us to interface with the majority of management software on the market. The advantage of our TX2 Cloud PDP solution? We offer a system with open API for the supply of data on demand: invoice data, life cycles, directory...
Finally, note that our Web EDI will also comply with the 2024 obligations. This solution is particularly suitable for companies exchanging a small volume of documents in EDI.
If you are a non-French company, you are not concerned by these obligations. However, your partners might be. You now know what are the possibilities for them. Of course, we can also support foreign companies in the dematerialization of their invoices. The TX2 Cloud platform is available internationally.
Our teams are there to support you and advise you on the most appropriate solution to ensure compliance when the time comes. Our positioning is simple: to offer today a solution compatible with the requirements of tomorrow!