Guide for businesses: mandatory electronic invoicing and its retail challenges
- Electronic invoicing will be phased in as a mandatory requirement for VAT-registered businesses starting in 2026.
- The reform primarily targets B2B transactions while introducing e-reporting obligations for specific data flows.
- Major retail chains face the greatest impact due to their high volume and complex invoicing workflows.
- Early preparation is key to ensuring regulatory compliance and optimizing financial processes.
The reform of electronic invoicing
Context and objectives
Electronic invoicing is part of a multi-year roadmap established by the French government to modernize B2B exchanges. Following its successful adoption in the public sector, the 2026 reform marks a major milestone: mandatory electronic invoicing for all B2B transactions, designed to replace traditional paper and PDF formats with standardized electronic data.
Beyond curbing VAT fraud and improving data accuracy, this reform enables the automated pre-filling of tax returns. For public services, electronic invoicing serves as a real-time economic monitoring tool, streamlining both audits and tax declarations. Ultimately, the shift aims to overhaul corporate accounting and financial practices; by standardizing invoice formats, the government is encouraging widespread process automation.
Impact on major retail chains
Large retail brands navigate massive invoice volumes, vast supplier networks, and intricate financial flows. Compliance requires a fundamental rethink of how data is invoiced and transmitted to ensure peak reliability.
Business obligations during the transition
Status of SMEs and large corporations
The electronic invoicing reform applies to all VAT-registered entities in France, following a phased rollout. Major retailers are in the first wave (2026) and must adapt their systems immediately. Their scale and organizational complexity also place greater responsibility on them regarding their business partners. Retailers will need to process incoming electronic invoices from suppliers with vastly different levels of digital maturity.
While SMEs have a more flexible timeline, electronic invoicing is an immediate priority. The 2026 reception mandate already requires selecting a compatible platform and preparing accounting teams for these new workflows.
Implementation timeline and key stages
The electronic invoicing reform will be deployed in specific stages:
- September 1, 2026: Mandatory reception of electronic invoices for all VAT-registered businesses, regardless of size, and mandatory issuance for large corporations and mid-caps (ETIs).
- September 1, 2027: Mandatory issuance extended to SMEs, small businesses, and micro-enterprises.
This schedule demands proactive compliance planning. The first step is mapping existing invoicing flows to identify potential bottlenecks such as
- Inconsistent formats,
- Manual processing,
- Or supplier dependencies.
Companies must then update their accounting and management software to handle electronic invoices and implement automated validation.
POS solutions must also comply with French regulations, specifically regarding till certification. Openbravo provides checkout solutions certified by the LNE, guaranteeing the inalterability, security, and traceability of all sales data.
This certification provides a solid foundation for navigating the electronic invoicing reform with confidence while ensuring data integrity.
The advantages of electronic invoicing for the retail sector
Modernizing invoicing processes
Electronic invoicing is a powerful lever for modernizing retail billing. Between in-store sales, e-commerce, returns / refunds, credit notes, and numerous suppliers, invoice management often suffers from manual data entry. Standardized electronic formats unify these flows and eliminate manual errors.
This modernization streamlines the flow of information between systems. Electronic invoices integrate directly into accounting software, enabling automated audits for compliance, VAT, and price consistency.
For major brands, this translates :
- To faster approval cycles,
- Better visibility into financial commitments,
- Superior ability to manage supplier performance across an entire network of sales points.
Fraud prevention and data security
In the retail sector, the risk of errors, duplicates, or fraudulent invoices is high. By mandating standardized formats, electronic invoicing limits falsification and bolsters the reliability of B2B data exchanges.
The process relies on secure mechanisms at every stage of the billing cycle.
Data is timestamped, archived in compliant environments, and verified before transmission. For finance departments, this means better audit control and a higher capacity to prove compliance during inspections.
Data security begins at the checkout. Integrating interoperable payment solutions within the IT ecosystem is crucial for mitigating fraud.
The partnership between Orisha Commerce and Sipay exemplifies this approach, helping to secure transactions, ensure the reliability of point of sale data, and streamline reporting to management and invoicing systems.
Preparing your business for the reform
Choosing the right format
Getting ready for electronic invoicing requires an understanding of the legally required formats. Unlike PDFs, electronic invoices must be issued in structured formats designed for automated processing. The most common Factur-X, UBL, and CII offer different levels of structuring based on an organization’s digital maturity.
For retailers, the choice of format depends on their accounting tools, checkout solutions, and exchange flows with suppliers and customers. The challenge is selecting a format that balances regulatory requirements with operational reality.
Key takeaway
The reform introduces the Partner Dematerialization Platform (PDP). These tax-office registered platforms manage the issuance, receipt, and transmission of electronic invoices, as well as data routing to the administration.
Choosing the right PDP is essential for long-term compliance.
Adaptation strategies and e-reporting
Electronic invoicing is complemented by mandatory e-reporting for specific transactions, such as B2C sales and international trade. While these don’t require an electronic invoice through a platform, the data must still be reported to the tax authorities. A holistic view of data flows is the most effective strategy. Organizations must identify which operations fall under electronic invoicing versus e-reporting and ensure their systems can transmit the required data.
E-reporting demands regular transmission cycles and high-fidelity data from sales points. Companies must embed these obligations into their financial and IT governance.
Orisha Commerce supports retail players with industry-recognized unified commerce solutions. In 2025, Openbravo POS was featured in the Gartner® Market Guide for Unified Commerce Platforms Anchored by POS for Tier 2 Retailers, confirming its status as a leading sector platform.
As part of the electronic invoicing reform, all Orisha Commerce solutions are evolving to ensure full compliance with regulatory requirements, in line with the deadlines set out in the official timetable.
The electronic invoicing reform is a transformative milestone for the retail sector. Beyond a mere regulatory checkbox, it opens the door to a profound evolution of financial processes, data reliability, and business management.
Anticipating this shift allows brands to secure compliance while driving operational performance.
Frequently asked questions
What is electronic invoicing?
Electronic invoicing involves issuing, transmitting, and receiving invoices in a structured electronic format that allows for automated system processing. Unlike a PDF or paper invoice, it contains standardized data that accounting tools and French administration services can use directly.
How do I implement electronic invoicing?
To implement electronic invoicing, start by analyzing your billing flows to identify the operations affected by the reform. Next, select compliant invoice formats and a Partner Dematerialization Platform (PDP) that integrates with your current tools. Finally, use testing and team training to ensure a secure transition and full regulatory compliance
Electronic invoicing in France: what are the terms of this reform?
The reform in France mandates a phased transition to structured electronic invoices for domestic B2B transactions. It includes an e-reporting requirement for other operations, such as B2C and international sales, with data transmitted via certified platforms to the tax authorities. The goal is to enhance compliance, traceability, and the fight against VAT fraud.
