France’s 2026–2027 B2B E-Invoicing Grace Period Explained

The French government announced a proposal to amend the mandatory B2B e-invoicing and e-reporting rules, including a two-year grace period. However, the grace period will not apply to all taxable persons, but only to those who demonstrate good faith in complying with e-invoicing requirements. The purpose of this measure is to give businesses enough time and room to navigate the technical and organisational challenges of the transition, which starts on September 1, 2026, and becomes fully mandatory by September 1, 2027.

The Scope and Effects of Proposed Amendments

With the proposed amendments, the French government proposes a grace period from September 1, 2026, to August 31, 2027, which should help businesses smoothly transition to and navigate the rollout of mandatory B2B e-invoicing. 

The main reason for this proposal, as noted in the Proposal, is that strict implementation on September 1, 2026, poses a risk of systemic blockage, including rejected invoices, suspended payments, cash losses, and paralysis of value chains. Therefore, to ensure the success of this vital reform, a more controlled implementation of the system is needed.

The grace period includes a moratorium on penalties and a certain level of administrative tolerance. Thus, during this period, businesses would not face sanctions for technical non-compliance with the new e-invoicing and e-reporting rules, provided the issues arise in good faith. Additionally, a suspension mechanism for situations in which repeated technical errors or anomalies affect multiple parties might be provided. 

Notably, even if businesses encounter difficulties when transitioning to e-invoicing, the customer’s ability to deduct VAT should remain intact, provided that the invoice still includes all essential legally required information. The Proposal also underlines that in cases where a large number of invoices are rejected, or the system experiences a major failure, it is crucial that businesses can still issue and receive invoices without interruption. Thus, a business continuity plan should be put in place to ensure invoicing and payments can continue if needed.

Conclusion

It is important to note that the two-year grace period does not delay the implementation of mandatory B2B e-invoicing. Still, it protects it by ensuring that an overly rigid rollout does not undermine companies’ cash flow or disrupt the normal movement of payments. While it does provide a certain level of flexibility in the implementation process, businesses should not rely on this mechanism to avoid complying with upcoming changes.

Source: National Assembly - Amendment Proposal No. I-1028, VATabout