If you run a business, you have an obligation to comply with invoicing rules. In fact, issuing invoices is a crucial commercial function for any company, and it is necessary to comply with strict regulations. In this article, we’ll take a look at all the legal requirements for invoicing. Compulsory information, format, archiving, continuous chronological numbering and payment deadlines…
Is invoicing compulsory?
Invoicing is a legal obligation in several specific cases, including:
- the sale of goods or the provision of services between professionals
- distance sales to individuals, such as mail order sales
This obligation concerns all legal forms of business, whether commercial companies, individual entrepreneurs or micro-entrepreneurs.
For services provided directly to individuals, a special document (often referred to as a note) must be issued. This note is required in the following situations:
- when carrying out real estate work, whether or not they are associated with a sale
- for services where the amount inclusive of VAT is equal to or greater than €25
For the liberal professions, an honorarium note is used instead of a traditional invoice. It must respect the same billing rules in terms of mandatory information, conservation and utility.
The importance of respecting billing rules
Billing rules address many issues:
- Legal proof: an invoice serves as legal proof in business interactions. It’s an official record of transactions between the parties
- Clarity of conditions: it specifies the terms and conditions under which the goods or services are sold, which helps to avoid misunderstandings or disputes between the company and its customers
- Accounting proof: the invoice is recorded in the company’s accounting. It is an essential document for tracking revenues and expenses
- VAT deduction: it allows companies to deduct the value added tax they paid on their own purchases from that they collected from their customers, which is crucial for tax management
- Tax audit: in case of audit, invoices serve as proof to verify the accuracy of tax declarations submitted by the company
Non-compliance with billing rules can lead to serious legal and financial consequences. Violations may result in penalties such as criminal fines of up to €75,000 or 50% of the transaction amount (billed or to be billed). In addition, non-compliance may result in a refusal of the right to deduct VAT and a tax adjustment of up to 50% of the amounts involved. It is therefore imperative to ensure that all invoicing is done correctly and in accordance with the law!
4 essential rules to create a compliant invoice
1. Mandatory Information
When invoicing, it is essential to include a set of mandatory statements on invoices to ensure their legal compliance. They ensure the legality and traceability of transactions. It also help prevent conflicts by providing clear and detailed documentation of business commitments.
To comply with the billing rules, here are all the elements that must appear on your invoice:
- Identification of the company and the client: mention the full name, the address of the registered office, the registration number in the commercial and company register (or any other relevant type of register) followed by the city where the register is located, and the intra-Community VAT number of the company and its customer.
- Date of issue: the date on which the invoice is issued must be clearly indicated.
- Invoice number: each invoice must be numbered sequentially and unique for easy tracking.
- Detailed description of goods or services: Provide a precise description of each good or service, including quantity, unit price, any increases or reductions, and total price excluding taxes.
- VAT and total amount: indicate the applicable VAT rate, the amount of tax calculated and the total all taxes included (TTC).
- Reference to a VAT exemption: if applicable, mention the legal reference justifying the VAT exemption.
- Date of delivery or performance: specify the date on which the goods were delivered or the services rendered.
- Payment terms: clearly define the terms of payment, including the payment term, the possible discount rate for advance payment, late penalties, and the lump sum recovery fee in case of late payment.
2. Numbering
The numbering of invoices must respect specific billing rules to ensure uniqueness and continuity. Each invoice number must be unique and follow a continuous chronological sequence without breakage, gaps or duplications. The dates on the invoices must also reflect this chronological order, corresponding to the progression of the invoice issues.
The numbering structure is relatively flexible. Companies can choose a simple numerical sequence (01, 02, 03, etc.) or incorporate a prefix that indicates the year and month (such as 2024-01-01, 2024-01-02, etc.). It is also common to reset the numbering at the beginning of each calendar year. This flexibility allows companies to adapt the numbering system to their accounting organization while respecting the legal requirements of traceability and clarity.
3. The form
Other billing rules: form and format. All invoices must be in French and produced in duplicate, whether in paper or electronic format. To use an electronic invoice, the buyer’s prior consent is required. An invoice is considered electronic only if it is both issued and received in this form.
Companies that opt for electronic invoicing must adopt specific measures to ensure the authenticity of their invoices and the preservation of the integrity of their content. These measures may include the use of an electronic signature, the establishment of a reliable control system, or the use of structured messages that meet established security standards.
From 2026, all French companies will be required to issue invoices in electronic form, in accordance with new government regulations. This obligation aims to improve the efficiency of commercial transactions, reduce billing errors and combat tax evasion.
The implementation process will be gradual: it will first concern large companies before extending to SMEs and micro-enterprises. Companies must therefore prepare now for this transition by integrating adapted electronic invoicing systems!
4. Archiving
The French Commercial Code stipulates that invoices must be kept for a period of 10 years. Tax legislation requires invoices to be kept for a minimum period of 6 years. The start of this retention period is calculated from :
- the date on which the invoice was issued
- or the date of the last entry of the invoice in the accounts
In practice, the retention period may extend beyond 6 years. For example, for fixed assets, the period starts from the financial year in which the last depreciation charge is recorded in the accounts. Specific invoicing rules are also in place for the retention of invoices which, although generated by IT tools, are kept on paper.
Invoice payment: what are the legal deadlines?
The legal time limits for payment of invoices depend on the regulations in force and the contractual agreements between the parties. In the absence of a specific agreement, the French Commercial Code stipulates that payment terms must not exceed 60 days from the date of issue of the invoice, or 45 days end of month.
However, the parties may agree a different period, as long as it is expressly stipulated in the contract and does not exceed the legal maximums. These agreements must be reasonable and must not abuse the dominant position of one of the parties.
Certain business sectors may also be subject to specific invoicing rules that define different payment periods. For example, in the construction sector, payment terms are adjusted according to the stage of completion of the work.
Late payment of an invoice may result in the application of late payment penalties, calculated on the basis of the interest rate applied by the European Central Bank to its most recent refinancing operation, plus 10 percentage points.
