Digital invoices: steps to follow before 2026
Digitalization of Supplier Invoices: Legal Requirements, Challenges, and Opportunities
The digitalization of invoices is set to become a legal requirement for all invoices starting from September 1, 2026, following the adoption of the 2020 finance bill, amended in 2021, with the initial deadline of July 1, 2024, extended to 2026. For businesses, this means being prepared to transition to digital invoice processing and archiving when the time comes. This presents both a challenge and an opportunity to modernize supplier accounting by driving a digital transformation project that benefits the organization.
The 2020 Finance Bill and Legal Obligations for Businesses
While the deployment of the requirement to issue digital invoices was completed by January 1, 2020, for public contracts, supplier invoices will face a similar fate starting in 2026. Article 56 of the 2020 finance bill, amended in 2021 with the deadline extension to 2026 (amendment no. I-5395 of article 10 of PLF 2024), aims to enhance VAT collection efficiency.
This anti-fraud measure, advocated by Minister of Action and Public Accounts Gérald Darmanin, promises to accelerate the digital transformation of small and medium-sized enterprises (SMEs). Many of them have yet to fully digitize their operations!
According to Acsel's 2019 Growth & Digital barometer, nearly a quarter of administrative departments within SMEs and intermediate-sized enterprises (ETIs) have not yet made the transition, while a recent OpinionWay study reveals that three out of ten SMEs have not initiated digital transformation. Moreover, electronic invoicing currently accounts for only 10% of the 2.5 billion inter-company invoices exchanged annually in France.
Reliable Copies and a Paperless Environment Are Ready
Despite the postponement of the requirement for digitalization of supplier invoices, the transformation is so profound that the planning should start immediately. This is no longer the exclusive concern of large corporations but applies to all. Legal obligations have played their part, but it's the entire environment that drives private companies to digitize their document flows.
Democratization of Invoice Digitalization
The move towards a paperless environment first addresses environmental concerns and the need to reduce carbon footprint, an obligation within the framework of corporate social responsibility (CSR). The "paperless" approach has been made possible by regulatory changes, including the introduction of reliable digital copies in 2016. A digitized invoice holds the same legal weight as its paper counterpart as long as it meets the conditions set by decree. Advances in character recognition technologies (RAD, OCR, and IRC) have democratized digitization and automated processing of supplier invoices.
Beyond Compliance: Benefits of Digitalizing Supplier Invoices for Businesses
Companies that have initiated their digital transformation have not only complied with a legal requirement but have also turned supplier invoice digitalization into a strategic center of profit. This is a significant shift from the traditional perception of supplier invoice management as a cost.
Digital Invoices: Faster, More Efficient, Cost-effective
By leveraging technological solutions like artificial intelligence, processing time can be reduced (usually 14 days for a paper invoice, according to Ernst & Young) and the risk of data entry errors, affecting 7% of supplier invoices according to the same audit firm, can be eliminated.
EY also states that automation of the process can reduce processing costs by threefold, without compromising supplier relationships. It, in fact, expedites payment and improves the commercial relationship, in addition to avoiding late payment penalties. Internally, it frees up time for the supplier accounting teams, allowing them to focus on higher-value-added tasks.
Digital Invoices: Steps to Take Before 2026
The horizon of 2026 still allows time for reflection on the implementation of a supplier invoice digitalization solution to comply with the future legal requirement. The first step is to audit existing processes. It is also an opportunity to identify all of the company's suppliers and inventory all validation circuits to have the most accurate mapping of all aspects.
Review the Digital Invoice Process
This phase serves to identify potential optimization levers and, most importantly, to create a specification sheet for selecting the type of supplier invoice digitalization solution and process. This choice will depend on your processes and the nature of your flows.
As in any digital transformation project, the deployment of the digital invoice solution starts with experimentation on a specific sample, such as a "pilot" supplier or a type of invoices.
Anticipate for Digitalizing Invoices Before the Deadline
Anticipation is better than rushing! Instead of anxiously waiting for the deadline to accept digital supplier invoices, it is important to initiate a project to avoid any issues on the day of implementation and the associated risks of penalties. Effective time management is essential in change management: it is an asset for gaining the buy-in of all employees and the involvement of the relevant departments, two key factors for the success of this project.