Mandatory electronic invoicing from 2026 in the construction and public works sector

The transition to mandatory electronic invoicing is transforming the way construction companies manage their finances. Here is practical information on what to expect and solutions to avoid pitfalls.

What is an electronic invoice?

The new tax regulations now require the use of electronic invoices. They must be issued, transmitted and received in digital form, by integrating structured data, which differentiates them from traditional invoices (even scanned).

These invoices are transmitted via a dematerialization platform, either the public portal or another private platform. This method allows reduce costs, and simplify the management and follow-up of invoices. It also helps speed up payment times. The term 'e-invoicing' is often used to refer to this practice.

Electronic invoices should be kept for 6 years for tax law needs and 10 years for commercial law. Each invoice must be authenticated and written in a clear and understandable manner.

Regulation of electronic invoicing in the construction industry

Construction is no exception to these changes. A timetable has been put in place for the application of the new rules.

Mandatory electronic invoicing from 2026

As of July 1, 2024, all businesses in France will have to accept electronic invoices. This transition will be gradual, spread between 2024 and 2026, depending on the size of the company.

• The big companies are concerned as of July 2024.
• Mid-size businesses (ETI) will follow in January 2025.
• SMEs and microenterprises will switch to electronic invoices in January 2026.

A pilot phase is planned from January to June 2024. It allows the system to be tested in real conditions.

The new mandatory information on electronic invoices

The transition to electronic invoicing introduces new mandatory information. Businesses must include this information on their dematerialized invoices:

• The customer's SIREN number.
• The delivery address of the goods, if different from that of the customer.
• The category of the transaction, whether it is the delivery of goods, the provision of services, or both.
• And, where applicable, the option to pay VAT on debits.

Staying on top of regulatory updates is critical. Laws and requirements can change, and it's important to continuously adapt billing processes to stay in compliance. Make sure to consult official sources regularly or collaborate with specialized advisers to anticipate and integrate changes.

Penalties for non-compliance with regulations

Non-compliance with electronic invoicing and payment data transmission obligations results in sanctions for construction companies.

Sending an invoice that does not comply in terms of format or dematerialization will be subject to a fine of €15 per bill, capped at €15,000 per year. The absence of transmission of payment data (regulations) also exposes the company to a fine of €250 per transmission, also capped at €15,000 per year.

Advantages and opportunities of electronic invoicing

Electronic invoicing has many advantages for construction professionals:

• Time saving: the generation and instant sending of invoices allows professionals to stay focused on their work sites. It also makes it easier to track invoices issued and received.
• Improvement of payment deadlines and cash flow: the Real-time monitoring of payments ensures financial stability and prevents recurring delays.
• Reducing fraud and errors: as manual entry is limited, the risks of errors and fraud are reduced. The method also facilitates the archiving of invoices.
• Savings: depending GS1 France, an electronic bill costs around €5, compared to €8 to 9.5 for a paper bill.
• Reliable data for a relevant analysis strategy: According to Generix Group, 52% of businesses believe that electronic invoicing improves the reliability of data, which makes it possible to develop more accurate dashboards to better manage their business.
• Ecology: electronic invoicing reduces the use of paper. It therefore contributes to the preservation of the environment.

The consequences of implementing mandatory electronic invoicing

The implementation of mandatory electronic invoicing marks a significant step in the digitalization of construction companies. It transforms business and accounting operations by integrating information into structured digital systems. Previously managed manually or semi-automatically, data now requires modernized processing methods.

This evolution requires not only an update of document and transaction management practices, but also more centralized and faster management of information. It also involves greater vigilance with regard to data security, which is pushing companies to review and strengthen their internal processes in the face of current technological requirements.

Challenges and solutions for implementing electronic invoicing

Les challenges of digitalization in construction are clearly evident with this transition to electronic invoicing. Here are some strategies to help businesses in the sector better manage obstacles.

• Assess current needs: Before digitizing billing processes, businesses need to understand their current flows.

Our advice: plan a detailed analysis of billing processes and flows to identify specific needs and gaps.

• Choosing an appropriate solution: the market offers numerous electronic invoicing solutions, but not all of them are adapted to the specificities of the construction industry or comply with regulations.

Our advice: compare software carefully, choosing those designed for construction, and make sure that it offers reliable technical support and easy integration with your existing systems.

• Anticipate the implementation: the transition to electronic invoicing is regulated for 2026. It requires preparation in advance.

Our advice: start the transition now to allow for gradual adaptation. Use this time to train your teams, test the software, and adjust processes at your own pace.

• Adaptation to digital tools : the adoption of new technologies can be a real challenge for teams that are less used to digital solutions.

Our advice: select software that facilitates the transition, such as Sage Batigest which can be easily connected to Alobees, which offers functionalities adapted to construction, including billing management, standards-compliant electronic signature, and comprehensive project monitoring.

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