Self-employed workers in france must switch to electronic billing - what will it cost?

UNION LEADERS WARN SECTOR IS ‘IN JEOPARDY’ OVER NEW RULES Incoming mandatory electronic billing is set to cost self-employed workers in France an estimated extra €600 a year – although for

many the costs will be significantly higher. From September 2026, all large and medium-sized companies must use electronic billing (facturation électronique). Smaller companies (companies

with between 1 and 249 employees) and self-employed people (auto-entrepreneurs) have until September 2027, at which point the switch also becomes mandatory for them. It is part of a bid to

reduce VAT fraud of between €8 billion and €10 billion per year in the sector, however the changes could push profit margins below the point of sustainability for many of the smallest

businesses. A lowering of the VAT threshold – when many businesses and self-employed people must start charging VAT – was included in the 2025 budget, but temporarily suspended until June

2025 after fierce backlash.  The government is now reviewing whether to withdraw the measure permanently – the Senate’s finance commission said it was in favour of doing so on April 9 FREE

GOVERNMENT BILLING TOOL SCRAPPED A preliminary list of government-approved software that can create secure electronic bills is available here.  This list has not been finalised and is still

subject to change - but currently all the services are paid-for, adding costs to the running of the business.  The government said it would provide a free state-backed alternative software,

however this scheme has since been cancelled meaning companies have no choice but to pay for an approved, private system.  Many self-employed workers may not be primed for the change – up to

45% bosses at smaller companies are reportedly not ready, mostly due to a lack of time before needing to make the change.  In addition, 85% of self-employed workers and bosses of small

companies are said to be unsure of how much they will need to pay in their situation.  Although the cheapest softwares – aimed at self-employed workers and the smallest businesses – start

from €18 per month, add-on fees will increase the price.  Overall, it is estimated that self-employed workers will be paying “at least €50 per month for the smallest [services],” said

delegate of the Syndicat des indépendants (self-employed workers federation) Jean-Guilhem Darré to Capital.  This is excluding likely other costs such as “potential processing fees charged

by accountants and bank commissions linked to compliance,” he added, which are likely to raise fees further.  For the smallest businesses where “self-employed people earn €1,000 to €1,200

per month… If an extra €600 [a year] is taken from them for this compulsory change, it will jeopardise France’s self-employment scheme,” the federation has warned.  Read more: How France’s

new electronic billing for self-employed people will work