The market for dematerialization of invoices - France (2024)

1.2 Invoice dematerialization makes rapid progress worldwide

The e-invoicing market is set to expand rapidly, with forecasts showing a significant increase in both adoption rates and market value. This growth will be driven primarily by the need to improve compliance and the efficiency of business transactions. By ****, it is estimated that nearly *** billion invoices will be processed each year. Currently, around *** billion of these invoices are exchanged electronically. In ****, the market was worth $*.* billion, and could reach approximately $**.* billion by ****. [***]

The electronic invoicing market World, ****, in billions of dollars Source: ****

Many European countries are in the process of adopting legislative measures concerning e-invoicing and national transaction reporting. The Billentis report provides valuable information on the adoption rate of paperless invoicing in European countries in ****:

Proportion of invoices sent electronically

Europe, ****, in

Source: ****

note that :

B*B: Business to Business (***) B*G: Business to Government (***) G*B: Government to Enterprise (***) B*C: Business to Consumer (***) G*C: Government to Consumer (***)

1.3 The dematerialization market in France is growing

The French dematerialization market is estimated to be worth * billion euros in ****. This marked increase follows a significant rise from *.* billion euros in **** to *.* billion euros in ****, before a slight contraction linked to the health crisis. The sector's growth is set to continue, boosted by the reform of paperless invoicing in France.

Sales in the dematerialization market France, **** - **** - ****, in billions of euros Source: ****

A market that will soon concern all companies

Since ****, all suppliers working with public bodies have been required to submit their invoices in electronic format via the Chorus Pro platform. originally, this requirement only concerned large companies. Gradually, the measure has been extended to include all companies, with a deadline of January *ᵉʳ, **** for small and micro-enterprises. As a result, any company invoicing a public entity, whatever its size, is now obliged to use Chorus Pro for its electronic invoices. The platform has reached record usage levels in ****, with nearly ** million invoices processed, compared with ** million in **** and ** million in ****. Since its launch in ****, over *** million invoices have been dematerialized. The volume of invoices deposited on Chorus Pro has been rising steadily since ****, illustrating that the transition to full dematerialization of processes remains gradual and requires significant ...

2.1 Invoices and private customers

According to an Opinion Way survey, "Les Français et les factures" from the end of ****, between **% and **% of French people personally pay their "current" utility bills (***), without going through an intermediary.

Personal payment of household utilities France, ****, % (***) Source: ****

The French generally pay their bills via direct debit each month. Internet and telephone bills are the most frequently paid by direct debit, at **% and **% respectively. Next come credit repayments, electricity bills and taxes.

Payment method for fixed expenses France, ****, in Source: ****

2.2 Invoices and companies

The dematerialization of invoices in companies has undergone a marked evolution in recent years. By ****, the number of companies equipped with this technology had risen by **% compared with ****, and now stands at **%. This progress is all the more significant when we consider the increase of over **% since ****, highlighting the boom in this practice. At the same time, there is a trend towards simplification, with **.*% of companies opting for a single solution, compared with **% in ****. This centralization of tools reflects a growing desire to streamline processes and maximize the benefits of paperless invoicing, particularly in terms of efficiency and compliance. [***]

Use of dematerialized invoicing solutions in companies France, ****, % Source: ****

Topping the list of e-invoicing solutions used by companies are e-invoicing solutions, accounting for **% of cases. These solutions are offered by operators who enable the dematerialization of invoices via various methods: EDI, electronic signature, or data entry portals often integrating technologies such as OCR and desktop publishing. Next come invoice digitization solutions, also known as AP Automation. These generally deliver significant benefits in terms of process automation and reduced management costs. In third place is the Chorus Pro platform, the mandatory billing portal for the transmission of invoices to public entities. Solutions for ...

2.3 Companies and tax reform 2026

Companies' awareness of the reform

Nearly **% of companies are aware of the reform, even though it was initiated some four years ago. Despite ongoing communication on the subject since ****, the awareness rate is still less than ***%. This mixed perception is reinforced by an often partial understanding of the details of the reform. Only **% of those surveyed claim to have a full grasp of the implementation timetable, while **% are aware of the obligations associated with the various use cases, and **% understand the constraints associated with electronic invoicing.

EU and international issues are also poorly understood, despite the fact that the ViDA (***) project has been under discussion since ****. Furthermore, **% of respondents admit that they have not consulted the technical specifications published by the Agence pour l'informatique financière de l'État, which are essential to ensure compliance with the new requirements.

Companies' level of awareness of the reform France, ****, in Source: ****

Companies' preparation for the reform

In ****, companies are showing strong commitment, with **% believing they will be ready for the reform deadlines, compared with just **% who doubt their readiness.

Do you think your company will be ready for the new reform deadlines? France, ****, in Source: ****

According to Generix Group's e-invoicing barometer, **% of companies ...

2.4 Impact of the reform on companies

In ****, the main benefits of the reform for businesses focus on process automation, with **% of respondents identifying this as a major benefit, particularly for automatic invoice reconciliations and consistency checks. Data reliability, essential for reducing errors and fraud, is cited by **% of companies, while **% of respondents point to improved cash management thanks to tools such as reverse factoring and dynamic discounting. What's more, **% of companies consider the implementation of a regulatory compliance solution that can be used in several countries to be an important advantage.

The benefits of reform France, ****, in Source: ****

The disadvantages of the reform for companies can be seen on several levels: firstly, the difficulty of gathering all the data (***). Finally, despite the postponements, one company in four considers that the timetable remains too tight.

Disadvantages of the reform for companies France, ****, in Source: ****

The graph below highlights the main fears French companies have about the implementation of e-invoicing reform. Among these concerns, **% of respondents fear bugs or IT problems, such as incompatibilities with accounting tools. The high cost of implementation worries **% of companies, followed by fears of increased cyber-attacks (***). Finally, **% of companies mention late payment as a risk .

Companies' fears following the implementation of the reform France, ...

3.1 Invoice dematerialization market players

To ensure the implementation of the new e-invoicing regulations, the tax authorities have developed a model for incoming and outgoing invoice flows between buyers and suppliers, based on a "Y" structure and incorporating innovative tools.

The Public Billing Portal (***)

The Public Billing Portal plays a central role as atrusted public intermediary. It is a free service that centralizes transactional and referential invoice data for the tax authorities. In addition to this function, the PPF hosts a directory for registering companies and their dematerialization platforms.

The Partner Dematerialization Platform (***)

The Plateforme de Dématérialisation Partenaire is a private player specialized in the management of dematerialized invoicing flows. In addition to invoice exchanges, it can cover all P*P (***) processes. Companies choosing a PDP solution can transmit their invoicing data directly to each other, provided the platform is recognized by the French government.

The Dematerialization Service Provider or Operator (***)

A Dematerialization Service Provider or Operator is also a private player offering services similar to those of a PDP. However, unlike a PDP, companies using an OD must go through the PPF to exchange billing data with others. Unlike PDPs, ODs are not subject to government approval to operate.

Source: ****

3.2 Activities related to electronic invoicing

Invoice dematerialization software developed by software distribution companies is usually accompanied by a number of ancillary services that enable the publisher to secure future revenues. The revenues of Generix Group, one of the largest publishers of dematerialization software, provide an overview of the revenue breakdown of a dematerialization company.

Generix Group revenue breakdown by activity World, ****, % Source: ****

The breakdown of Generix Group's sales shows a predominance of SaaS application services (***) represent a more marginal share, reflecting the priority given to recurring solutions rather than one-off sales. This structure illustrates a strategy geared towards high value-added services and recurring revenues.

4.1 Invoice dematerialization takes several forms

Electronic invoice formats :

Structured" invoices

These are issued according to government-recognized electronic data interchange standards. They come in several formats, including EDI (***), XML and other formats such as SAP's IDoc.

Unstructured" invoices

These are sent in non-editable electronic format (***) whose content cannot be fully interpreted by computer.

Hybrid invoices These combine the characteristics of the first two types, in the form of a PDF containing structured information. [***] Dematerialized invoice formats accepted by PPF : As part of the reform of electronic invoicing, the Public Billing Portal (***) formats. [***]

Factur-X

The Factur-X format is a hybrid model that complies with European standard EN ** ***, based on Franco-German standards that define the information on a digital invoice. This format comprises two main elements:

a PDF/A-* file, which presents the invoice visually ; an XML file, which contains the necessary structured data.

Thanks to this dual structure, Factur-X can be read by both humans and IT systems, making it both a flexible and efficient solution for managing electronic invoicing.

Universal Business Language (***)

The UBL dematerialized invoice is an open XML-based format designed to facilitate the exchange of electronic data between companies and organizations. Developed by the Organization for the Advancement of Structured Information Standards (***) and overseen by ...

4.2 Billing software comparison

Invoice dematerialization offers a number of advantages:

Efficient processing and error reduction: It enables invoicing data to be processed rapidly by integrating them directly into payment and accounting systems, thus considerably reducing data entry errors and improving fraud detection. Cost reduction: By replacing paper documents with structured, machine-readable electronic formats, e-billing delivers substantial savings on printing, postage, internal circulation, archiving and human resources. Optimized operations and faster payments : Automated invoicing processes reduce errors, save time, facilitate cash flow management and integrate easily with digital payment solutions, improving operational efficiency and speeding up payments. Adaptability for SMEs: e-invoicing solutions are scalable, enabling small and medium-sized businesses to grow without being overwhelmed by the increasing volume of invoices they need to manage. Improved reporting and compliance : The use of technologies such as robotic process automation and artificial intelligence optimizes e-invoicing management, promotes automated compliance reporting, strengthens revenue tracking, facilitates tax forecasting and increases fraud detection. These benefits support public policy objectives such as deficit reduction, financial transparency and sustainability.

Source: ****

Electronic invoices can be integrated with invoicing software such as SAP. E-invoicing software is generally sold at prices affordable to businesses, although these can vary widely.

Source: ****

4.3 Partner Dematerialization Platforms (PDP)

Partner dematerialization platforms, or PDPs, are certified entities registered with the tax authorities. They act as intermediaries in the invoice management process.

These solutions enable invoices to be sent and received, while offering a range of complementary services to manage the complete invoicing cycle. These services includeautomatic document import, invoice receipt alerts, document validation, payment andarchiving with probative value.

The use of a PDP enables companies tocentralize all their billing management in a single interface. It is also important to note that PDPs are the only intermediaries authorized to exchange directly with the tax authorities, particularly for invoice transfer and electronic reporting. [***]

In ****, impots.gouv.fr communicated the list of PDPs whose submitted files were selected by the administration during the first phase of the registration procedure. These companies are therefore considered to be registered, subject to their future connection to the public invoicing portal. This list includes some ** partner dematerialization platforms. These include :

Accenture Arteva B*BRouter Cegedim Cegid Edicom Esker Generix Group Pennylane Qonto Quadient NCS Sage

4.4 Silae and chartered accountants: a relationship under strain

An abrupt price increase

Silae, leader in the French payroll software market, handles *.* million pay slips every month on behalf of accounting firms. On the strength of its dominant position, with a market share of almost **%, in **** the publisher launched its new integrated solution, My Silae, combining payroll and human resources management. However, the announcement of a price increase linked to this new product quickly aroused strong discontent among chartered accountants. The increase - by some estimates up to ***% - was seen as an attempt to force-sell the additional functionality.

Chartered accountants' indignation

As early as September, the Conseil national de l'Ordre des experts-comptables (***) and IFEC, one of the profession's main unions, publicly voiced their opposition. Criticism focused on several points: limited interoperability, the deletion of certain functionalities, a decline in the quality of legal parameters and a lack of modularity in the offering. The president of the IFEC even alerted the French competition authority to a possible abuse of a dominant position.

Despite insistent requests from its customers to postpone or reduce price increases, Silae maintained its policy. A registered letter dated September **, **** formalized the new price schedule and the termination of the old contracts, with the new prices to ...

5.1 The scope of business-to-business electronic invoicing

Since ****, all companies have been required to issue digital invoices to submit payment requests via Chorus Pro, as part of their contracts with the State, local authorities and public establishments.

Electronic invoicing, also known as e-invoicing, applies to all transactions involving the purchase and sale of goods or services between companies subject to French tax. between VAT-registered companies established in France, for domestic transactions.

In addition, companies must declare certain information to the tax authorities through a process known as e-reporting, for transactions not covered by the e-invoicing obligation. This applies in particular to companies subject to VAT in France that do business with private individuals, those not subject to VAT, or companies located abroad.

Decree no. ****-**** of October *, **** specifies the rules for issuing, transmitting and receiving electronic invoices, and for transmitting invoicing and payment data to the Direction Générale des Finances Publiques.

Source: ****

5.2 The obligation of electronic invoicing

Electronic invoicing will gradually become mandatory for French companies.

from September ****, companies will have to convert their documents into a compliant electronic format and transmit them via a dematerialization platform. The e-billing reform comprises two distinct obligations.

The e-invoicing obligation applies to all companies that :

are subject to VAT ; have a professional clientele (***); carry out transactions in France.

The e-reporting obligation applies to companies that:

are subject to VAT ; have a retail customer base (***) ; and/or carry out international operations.

Roll-out timetable for the reform announced by the **** Finance Act :

Source: ****

Authorized invoice formats:

The government recently defined three e-invoicing formats that will now be mandatory. As a result, it will no longer be permitted to generate invoices using traditional office tools such as Excel or Google Docs. It will be necessary to adopt an invoicing solution capable of producing at least one of these three formats.

Cross Industry Invoice (***) Universal Business Language (***) Hybrid format (***)

Failure to comply with this electronic invoicing obligation may result in a fine of €** per non-compliant invoice.

New mandatory information :

The reform now requires the addition of four new mandatory items of information on invoices, in addition to those already required. These are

The buyer's SIREN ...

6.1 Market segmentation

• Cegedim
• Ciril Group
• Docaposte
• Iron Mountain
• Luminess Jouve
• CEGID
• Everial
• SER Group
• Yooz
• Esker
• Idnomic Keynectis
• Itesoft
• Xelians Archiveco
• Asterion (Exela)
• Asterion (Exela)