Since the announcement of article 153 of the 2020 Finance Act, ICD International is honored to participate in the various workshops led by the DGFIP (Direction générale des Finances publiques). These workshops will determine the technical and operational details of the decree's application. We are pleased to report on the progress made following the fifth workshop on the e-reporting in May 2021.
Definition and objectives :
The e-reporting corresponds to the transmission of transaction data by a taxable person to the tax authorities, without transfer to the customer.
This applies to transactions not subject to invoicing and/or between non-taxable persons.
France is part of a global initiative. A number of countries have already implemented this system, including Portugal, Spain, Russia, Italy, etc.
General diagram and principle:
L'e-reporting can be filed in any form:
- either directly on the public platform (e-reporting direct);
- or via a private platform which will send the data to the public platform.
This data is then collected by the public platform, whose data flow feeds the tax authorities' applications for pre-filling VAT returns and combating fraud.
What data is mandatory?
If you are a supplier :
- Intra-Community supplies of goods and services (within the EU) ;
- Exports of goods and services to non-EU companies ;
- Operations to overseas collectivities (nb: operations with the French overseas departments will be included in e-invoicing ).
If you are a customer/buyer :
- Intra-Community acquisitions of goods and services - whether or not made in France ;
- Purchases of goods and services from non-EU operators (excluding imports) - whether or not located in France.
Operations excluded from the e-reporting
- Transactions carried out by a non-taxable legal entity, such as a non-profit association, and transactions between non-taxable entities.
- Exempt operations covered by articles 261 to 261 E of the CGI (training, medical activities, certain financial and banking operations, etc.).
How will E-reporting be transmitted and how often in B2B?
Depending on the transmission channel, the data to be transmitted will differ. For international B2B, a invoice is mandatory.
As with e-invoicingthe e-reporting follows the same circuit. On the one hand, data can be transmitted via the certified private platform, which in turn transmits the data to the tax authorities. Alternatively, it can be sent directly to the public platform.
Similarly, the data to be transmitted is identical to that of the e-invoicing. French invoicing rules apply to both. However, there is a difference in the limit of the customer identification number. It will not be based on the SIREN, but on the intra-Community VAT number for customers within the EU, and the national register number for operators outside the EU.
Please note: The e-reporting does not replace the declaration of exchange of goods and services (DEB/DES).
Unlike Spain, which has opted for a uniform model, France has opted for a transmission frequency tailored to the company's activity, i.e. according to its tax regime.e-reporting model, France has opted for a transmission frequency adapted to the company's activity, i.e. according to its tax regime. However, this flexibility does not prevent the objective of pre-filling VAT returns from being achieved.
For companies subject to the normal real-estate regime :
- weekly reporting within 4 days of the end of the week.
For other companies (micro-entrepreneurs, basic exemption scheme, simplified scheme (RSI)):
- monthly reporting within 7 days of the last day of the month.
Terms and conditions for B2C or legal entities or non-taxable persons
On the other hand, the company issuing the invoices will use the same channel for transmission to the authorities as for B2B invoices (without transmission to the customer).
Finally, if a company is not computer-equipped, it will have to send certain information via a portal entry or by sending files formatted by operation. This will include the VAT rate, the VAT amount, the reason for exemption if applicable, the currency if different from the euro, and the customer identifier.
ICD International remains at your disposal for any further information you may require on the technical application of this law.
Our experts set up audits for all our customers wishing to assess and anticipate possible changes in order to comply with future legislation.