Electronic invoicing: operation and obligations

Why a scheme for electronic invoicing?

Electronic invoicing will become progressively compulsory in France between 2026 and 2028.

To ensure efficient and uniform implementation, the tax authorities have imposed a standardized invoice transmission scheme, known as the "Y pattern .

This model aims to guarantee transaction traceability simplify tax audits and automate corporate accounting processes.

The objectives of its implementation

The Y diagram has 4 objectives:

• Combating VAT fraud In France, VAT fraud represents an estimated loss of 20 billion euros a year (source: Cour des Comptes). Thanks to the centralized transmission of invoices, tax authorities will be able to better monitor transactions and reduce fraudulent declarations.

• Harmonizing exchanges between companies With standardized formats and a single transmission mode, companies will be able to exchange invoices more easily, without software incompatibilities.

• Automate accounting management Electronic invoicing: electronic invoicing enables better integration with ERP and accounting software. The aim is to reduce data entry errors and speed up payment processing.

• Greater transparency and traceability Each invoice will pass through a control point validated by the tax authorities. This will make it impossible to make any unauthorized changes after issue.

The challenges of electronic invoicing

While this reform brings tangible benefits, it also implies a number of challenges. technical and organizational challenges for companies :

• Unify flows between companies and tax authorities Today, each company uses its own invoicing software. The transition to a single scheme means that these tools need to be updated and brought into line with the new standards.

• Guaranteeing the conformity of exchanges Companies must ensure that their invoices comply with strict formats (Factur-X, UBL, CII) and are transmitted via certified platforms.

• Managing the gradual transition Depending on company size, the obligation will apply between 2026 and 2028. It's crucial to anticipate these changes to avoid any administrative or tax obstacles.

Understanding the Y-scheme for electronic invoicing

Le Y pattern is the model used by the tax authorities to organize the circulation of electronic invoices. It defines the manner in which invoices must be transmitted between companies and tax authorities guaranteeing their conformity and traceability.

Definition of the Y pattern

The Y-scheme is based on three main players :

1. Invoice issuer (supplier) It creates the electronic invoice in a compliant format (Factur-X, UBL or CII).

2. An intermediate platform The company chooses to send its invoice via :

   • Public Billing Portal (PPF) managed by the State.

   • A Partner Dematerialization Platform (PDP) an approved private solution.

3. Invoice recipient (corporate customer) and tax authorities The PPF or PDP sends the invoice to the customer and forwards the tax information to the authorities.

The two possible circuits in the Y diagram

1. Transmission via the Public Billing Portal (PPF)

• The company deposit invoices directly on the PPF .

• The PPF checks compliance of the document and sends the invoice to the recipient.

• In parallel, tax data is sent automatically to the tax authorities.

✅ Benefits it's a solution free simple compliance. ❌ Disadvantages Limited functionality, no advanced integration with accounting software.

2. Transmission via a Partner Dematerialization Platform (PDP)

• The company goes through a private PDP which takes care of the formatting archiving and transmission of invoices.

• La PDP then sends the invoice to the customer and transmits tax information to the PPF.

✅ Benefits advanced services, ERP integration automation of accounting processes. ❌ Disadvantages The cost varies (and can be high: up to several hundred euros per month) depending on the service provider.

Y diagram illustration

Ce tax administration scheme shows the Y diagram visually:

Which companies should follow this scheme?

The widespread use of electronic invoicing concerns all companies subject to VAT in France .

However, the application of the Y pattern will be gradually depending on company size.

Companies covered by the scheme

All companies must transmit and receive of electronic invoices, following the Y-scheme, but with different different deadlines :

• Major companies (+5000 employees or sales > €1.5 billion) → September 1, 2026

• Mid-sized companies (ETI) → September 1, 2027

• SMEs and VSEs → September 1, 2028

So a supplier who works with large companies will need to be ready by 2026 even if it is itself a VSE.

Implementation schedule

Companies must anticipate these deadlines to avoid any interruption in their billing cycle.

Billing obligations in the Y-scheme

By following this model, companies must comply with the following specific obligations in terms of invoice transmission and format.

The obligation to use electronic invoicing

Only the domestic B2B transactions (between French VAT-registered companies) must follow the Y pattern.

The transactions concerned are :

• All sales and services between companies in France.

• Some operations with foreign countries via e-reporting.

Excluded transactions are :

• B2C sales → No electronic invoicing, but mandatory e-reporting for certain operations.

• Transactions with foreign companies → Only certain data need be transmitted.

Example A freelancer billing a private individual does not have to use an electronic invoice but must declare sales via e-reporting .

Invoice format requirements

Electronic invoices must comply with three official formats to guarantee the automation of accounting processes:

Example An SME looking to facilitate accounting management may favour Factur-X while a company with international trade can opt for CII .

Penalties for non-compliance

Companies that fail to comply with the new rules risk financial and tax penalties :

• 15 fine per non-compliant invoice capped at 15,000 for an amount of .

• Risk of tax reassessment in case of error or omission.

• Customer rejection of invoices if they don't comply with the new standards.

Example A company that continues to issue conventional PDF invoices after 2026 exposes itself to penalties and delays in payment if its customers refuse them.

How can you prepare your company for this new situation?

The introduction of the Y-scheme has led to major changes in invoice management. To avoid billing delays and blockages, companies must anticipate and adapt their tools and processes.

Check the compliance of your billing software

Not all billing software is compatible with the required formats by the reform. It is therefore essential to check several points:

Criteria to check are :

• Compatibility with Factur-X, UBL or CII → Your tool must be able to generate these formats.

• Connection to a PDP or PPF → It must be able to send and receive invoices via approved platforms.

• Secure archiving → Invoices must be kept for 6 years minimum in accordance with tax requirements.

A company using Excel or Word for its invoices will have to switch to a certified billing software as Sage, Cegid ou QuickBooks .

Choosing between PPF and PDP

Companies have two options for transmitting their invoices:

📌 Example : A large company with a high volume of invoices will be able to opt for a PDP in order to streamline exchanges, while a VSEs with few invoices will have to make do with the PPF gratuit .

Training your teams

The adoption of the Y scheme implies new tools and procedures. A appropriate training is essential to avoid errors and ensure billing continuity.

What to expect :

• Training in new formats and platforms (PPF or PDP).

• Updating internal processes to integrate electronic invoicing.

• Raising awareness of compliance risks (penalties, invoice rejections).

An accountant used to sending PDF invoices by e-mail must learn to transmit them via an approved platform .

Heropay helps you switch to electronic invoicing

Le Y pattern will become mandatory for all VAT-registered companies by 2026. This means rethinking your invoice exchanges, choosing a certified platform (PPF or PDP) and guaranteeing the conformity of your invoice formats (Factur-X, UBL or CII).

With Hero, you can anticipate these changes with ease:

• June 2025 Hero: issue your first electronic invoices in Factur-X format directly from your Hero account. You meet the requirements of the Y-schema right from the start.

• Summer 2025 : Hero lets you receive and pay electronic invoices with secure, automated tracking.

• September 2025 you benefit from Hero financing solutions by accelerating your payments with electronic invoice pre-financing.

• Late 2025 Hero is backed by a PDP authorized partner to guarantee the correct transmission of your tax data to the tax authorities.

• 2026 Hero aims to become Partner Dematerialization Platform (PDP) to offer you a 100% integrated service for managing your invoices.