Mandatory billing software in 2025: the rules you need to know

Which companies will be required to use electronic invoicing software by 2025?

The reform requires all companies subject to VAT to be able to receive electronic invoices from July 1, 2024 .

The obligation to send of electronic invoices varies according to company size. This government calendar summarizes the key points:

• Major companies

  • More than 5,000 employees

  • Ou sales greater than 1.5 billion euros

  • Et total bilan greater than 2 billion euros → Obligation to issue from July 1, 2024 .

• Mid-sized companies (ETI)

  • Employees between 250 and 5,000 employees

  • Or sales of less than 1.5 billion euros

  • And total assets of less than 2 billion euros → Obligation to issue from January 1, 2025 .

• Small and medium-sized enterprises (SMEs)

  • Employees between 10 and 250 employees

  • Or sales of less than 50 million euros

  • And total assets of less than 43 million euros → Obligation in 2026 .

• Microenterprises

  • Less than 10 employees

  • Sales below 2 million euros

  • Or balance sheet total less than 2 million euros → Les auto-entrepreneurs benefiting from basic VAT exemption or producing only VAT-exempt operations are exempt the obligation to use electronic invoicing software.

Can I continue to invoice using Word or Excel?

Visit micro-companies and TPE not subject to the electronic invoicing obligation may continue to use Excel or Word to edit their invoices.

However, these tools do not guarantee compliance required by the reform. It is therefore strongly recommended to use certified software.

The context of electronic invoicing reform

The obligation to use invoicing software by 2025 stems from the French Finance Act for 2020, which provides for the generalization of the electronic invoicing between VAT-registered companies.

Its objectives are clear:

• Combating VAT fraud estimated at 20 billion euros a year in France according to the Court of Auditors .

• Simplifying administration thanks to automated billing processes.

• Modernizing exchanges and better traceability of financial flows.

What features are mandatory in an invoicing software package?

As of 2025, using compliant software means more than just issuing invoices: it must meet precise technical standards set by the Direction Générale des Finances Publiques (DGFiP).

The aim is to guarantee transparence the traceability and the authenticity transactions.

Compliance with Factur-X or XML UBL/CII format

All software must be able to produce invoices in one of the three standardized formats recognized by the reform:

• Factur-X hybrid format with a Readable PDF and a Structured XML . This is the most accessible format, especially for TPE-PME .

• UBL (Universal Business Language) standardized XML format, widely used in the European Union .

• CII (Cross Industry Invoice) recommended format for transactions internationales based on UN/CEFACT .

Example: an SME sending an invoice to a B2B customer needs to generate a Factur-X or UBL file so that its customer can automatically integrate it into its accounting system.

Connection to a dematerialization platform (PDP or PPF)

The software must be able to transmit electronic invoices via two types of platform:

• Le Public Billing Portal (PPF) set up by the French government. Free, but with limited functionality.

• A Partner Dematerialization Platform (PDP) approved by the French tax authorities, enabling closer integration with internal management tools.

The software must also ensure :

• La traceability operations (history of shipments and receipts).

• L' secure archiving invoices for at least 6 years as required by General Tax Code (CGI) - Article L102 B .

Compliance with mandatory information on invoices

Software should automatically generate all legal information required by the reform :

• The number SIREN of the issuer and the customer.

• The nature of the operation sales of goods, provision of services, or a combination of the two.

• VAT amount applicable, or the mention of exemption if necessary ("TVA non applicable - article 293 B du CGI").

Example: an invoice issued by a VAT-exempt self-employed entrepreneur must bear the specific wording, otherwise it will be rejected or punished.

Electronic signature and document authentication

Although optional, the electronic signature is recommended to ensure :

• L' integrity of the invoice (no modification possible after issue).

• L' authenticity of the transmitter.

It is mandatory in certain specific cases, in particular for documents exchanged within the framework of public contracts (B2G.

How do I choose the right billing software for this year?

Choosing the right invoicing software is about more than just technical compliance. It must also be adapted to the needs and size of the company.

Check PDP approval or connection to PPF

First of all, you need to make sure that the :

• East Approved PDP This means he can send invoices directly to tax authorities and customers.

• Or that it is interoperable with PPF which enables invoices to be sent and received via the public portal.

Example: Sage is in the process of obtaining PDP accreditation and already offers a connection to the PPF, guaranteeing compliance for its users.

Compare functionalities according to business needs

• For large companies you should opt for solutions with ERP integration , multi-entity management and e-reporting automatisé .

• Visit TPE-PME will be looking for simple software with automated invoice creation , payment tracking and compliant archiving .

Example: Pennylane is tailored to SMEs, with offers from 39/month with integrated accounting and electronic invoicing.

Software costs and pricing models

Rates vary according to functional scope:

• Basic solutions (e.g. Evoliz, QuickBooks): from 10 € / month .

• Complete PDP solutions (e.g. Cegid, Sage): from 50 € / month with advanced options such as electronic signature and ERP integration.

Please note: some service providers charge according to volume of invoices issued or the number of users .

What are the penalties for non-compliant billing software?

Failure to comply with the new e-invoicing obligations exposes companies to the following penalties financial risks , sales representatives and tax .

The Direction Générale des Finances Publiques (DGFiP) has introduced specific penalties:

Risks for businesses

A company that does not use compliant invoicing software may face :

• Refusal to pay customers can refuse invoices non-conforming, which delays collections .

• Loss of the right to deduct VAT an incorrect or improperly submitted invoice prevents VAT recovery .

• Blocking cash flow delays in invoice processing can destabilize financial management of the company.

Administrative fines

• 15 € fine per non-compliant invoice capped at 15,000 for a (source: Article 1737 of the French General Tax Code).

• Amende de 250 € in the event of non-transmission of e-reporting data to the tax authorities (per transmission or per reference period), up to a maximum of 15,000 for an amount of .

• Non-compliance with VAT anti-fraud law a penalty of 7,500 per non-compliant software or system renewable every 60 days if the situation is not regularized (source: Article 1770 of the CGI).

👉 Example: an SME that continues to use non-certified invoicing software is exposed to the following risks a double penalty rejecting invoices and fine of € 7 500 .

Tax inspections

The tax authorities are empowered to :

• Control software Check the use of PDP-approved software or software linked to the PPF.

• Examine invoice formats they must be in Factur-X, UBL or CII with the mandatory information and a horodatage compliant.

• Check archiving : obligation to keep invoices for 6 years in conditions that guarantee their integrity (source: CGI, Article L102 B).

Example: during an inspection, a company will be required to provide a certificate of conformity or a proof of PDP approval . Otherwise, it risks immediate sanctions .

What are the best mandatory billing programs for?

Some solutions already stand out for their compliance with required formats their easy integration with PDPs and PPFs and their features for companies of all sizes .

The best reform-compatible software

Here's a list of billing software compatible with the 2025 reform. Some are already Approved PDPs others are connected to PPF :

Example An SME with 50 employees can choose Cegid if it needs a solution integrated with its ERP, while a freelancer may opt for QuickBooks simple and economical.

4 criteria to consider when making your choice

Here are 4 criteria to consider when making your choice:

• PDP or PPF ? For more services (archiving, automation, reporting), opt for a Approved PDP . Otherwise, a simple connection to PPF may be enough.

• The most important features electronic signature, multi-VAT management, automated dunning.

• Adapting to company size from lightweight solutions for very small businesses to more comprehensive platforms for large organizations.

• Price list To be adapted according to invoicing frequency and volume.

Heropay helps you with electronic invoicing

The transition to a billing software compliant by 2025 is becoming a key step for all companies subject to VAT.

For simplify this transition and ensure compliance right from the start, Heropay offers a comprehensive solution designed to suit all company sizes.

With Heropay, you benefit from :

• From June 2025, from ability to issue invoices electronic invoicing in Factur-X, UBL or CII formats directly from your customer area. Your invoicing remains simple, yet fully compliant with legal requirements.

• From summer 2025, you'll be able to receive, process and pay your invoices with real-time monitoring from your Hero interface.

• From September 2025, we'll be enabling you to finance your electronic invoices in just a few clicks thanks to our integrated financing solutions. You can improve your cash flow and anticipate your cash requirements without complexity.

• By the end of 2025, we will be backed by a partner PDP to guarantee the transmission of your invoices to the tax authorities and your customers' platforms.

• In 2026, Heropay will become a Approved PDP This will provide you with a complete dematerialization solution, centralized on a single tool.

Heropay helps you make the transition to electronic invoicing without complexity or wasted time. You comply with legal obligations, while simplifying the day-to-day management of your invoices.