Article 123 of France’s 2026 Finance Act: Obligations and Risks for Businesses

• What Is Article 28 of the Draft Finance Bill (Now Renumbered as Article 123)
• Regulatory Framework and Business Obligations
• Penalties for Businesses and Certified Platforms
• Prepare for Compliance with Orchestrade® eFacture

Understanding Article 123 of France’s 2026 Finance Act

Article 123 forms part of the broader rollout of France’s mandatory e-invoicing reform, confirming that the new framework will enter into force on 1 September 2026 for all VAT-registered businesses.

The legislation pursues two main objectives:

• strengthening the legal certainty of the reform,
• ensuring the full operational deployment of e-invoicing and e-reporting.

By clarifying both the implementation timetable and the technical framework, Article 123 reinforces the legal foundations of France’s e-invoicing reform. It defines: the obligations applicable to VAT-registered businesses, the central role of Certified Platforms, and the procedures governing the transmission of tax data to the French tax authorities. The legislation also provides important clarification regarding the respective responsibilities of businesses and Certified Platforms, together with the penalties applicable in cases of non-compliance.

Regulatory Framework and Business Obligations

1. Mandatory Use of a Certified Platform

Article 123 formally establishes that VAT-registered businesses must use a Certified Platform for:

• issuing and receiving electronic invoices,
• transmitting invoice data to the French tax authorities.

The legislation now explicitly refers to Certified Platforms, replacing the previous terminology referring to Partner Dematerialization Platforms (PDPs). This change removes any ambiguity by clearly identifying the only entities authorized to issue, receive and transmit electronic invoice data within the French e-invoicing framework.

 

2. Creation and Role of the Central Directory

The reform also provides for the creation of a central business directory managed by the French State. This directory will be populated and continuously updated using information provided directly by businesses.

In particular, it will contain:

• all VAT-registered businesses established in France, based on data from INSEE and the national VAT register,
• the electronic invoicing address of each purchasing entity, linked to its designated Certified Platform.

As one of the cornerstones of the reform, this directory is designed to ensure full interoperability between Certified Platforms while guaranteeing uninterrupted invoice exchanges, even when a business changes service provider.

 

3. Transmission of Data to the French Tax Authorities

Article 123 also clarifies and strengthens the rules governing the electronic transmission of data relating to:

• transactions covered by e-invoicing,
• transactions subject to e-reporting, including B2C transactions, international operations and payment data.

Only Certified Platforms are authorized to transmit these data flows within the framework of France’s e-invoicing reform.

Article 123 also provides greater clarity regarding the categories of transactions falling within the scope of e-invoicing and those subject to e-reporting requirements.

 

4. Editorial Updates and Scope of the Reform

The legislation also introduces numerous amendments to the French General Tax Code, including:

• replacing the term “information” with “data“, which more accurately reflects structured electronic exchanges,
• clarifying the scope of transactions subject to e-invoicing and e-reporting obligations,
• removing or rewriting provisions that have become obsolete following changes to the Public Invoicing Portal, the role of Certified Platforms and the official terminology used throughout the reform.

These amendments are intended to strengthen legal certainty and reduce the risk of inconsistent interpretation.

 

5. Changing Certified Platforms and Ensuring Service Continuity

Article 123 (formerly Article 28 of the 2026 Draft Finance Bill) also establishes the rules governing the transfer from one Certified Platform to another, including the minimum services that must be maintained during the transition. The outgoing platform will be required to provide a minimum level of service for a period of 12 months. These provisions, approved by the French Senate, will be further detailed in an implementing decree to be published at a later date.

Penalties Introduced by Article 123

One of the most significant contributions of Article 123 is the clarification and strengthening of the penalties applicable in the event of non-compliance with the new regulatory obligations.

Penalties Applicable to VAT-Registered Businesses in France

 

* Article repealed but carried forward pursuant to Order No. 2025-1247 of 17 December 2025 recodifying value added tax provisions and introducing various amendments to the French Code of Taxes on Goods and Services

In the event of continued failure to comply with the requirement to use a Certified Platform :

• the company will first receive a formal notice,
• if the breach has not been remedied within three months, a fine of €500 excluding VAT will apply,
• if the non-compliance continues, the fine will increase to €1,000 excluding VAT and will then be renewed every three months.

Penalties Applicable to Certified Platforms

 

In the event of continued failure by a Certified Platform to comply with its obligation to update the Central Directory:

• the Certified Platform will first receive a formal notice;
• if the platform fails to remedy the breach within the deadline specified in the formal notice, a financial penalty will be imposed. The amount of the penalty will be determined by the tax authorities according to the seriousness of the breach, its duration and its impact on the proper functioning of the Central Directory;
• if the non-compliance continues, the penalty may be imposed repeatedly, up to an annual maximum of €100,000 (excluding VAT).
• If the platform fails to regularize its situation after three penalties imposed over two consecutive years, its registration as a Certified Platform may be withdrawn.

These provisions demonstrate the French government’s intention to hold every participant in the e-invoicing ecosystem accountable, including both businesses and Certified Platforms.

 

Leniency in the Event of Voluntary Compliance

For the penalties provided for under Articles 290 and 290 A of the French General Tax Code (CGI), relating respectively to e-reporting and electronic invoicing, the legislation provides that fines will not apply:

• in the event of a first infringement;
• where the business voluntarily remedies the irregularity;
• where compliance is achieved within 30 days of the tax authorities’ initial request.

These exemption measures, which will apply once the new obligations enter into force on 1 September 2026, reflect the legislator’s intention to encourage progressive compliance rather than impose immediate financial penalties.

 

Preparing Today for Tomorrow’s Operational Challenges

Beyond its regulatory implications, Article 123 of France’s 2026 Finance Act highlights that e-invoicing is a cross-functional business transformation affecting: Order-to-Cash (O2C) processes, Purchase-to-Pay (P2P) processes, supplier invoice management, tax compliance, and the architecture and integration of corporate information systems.

Preparing for these changes now enables businesses to:

• reduce the risk of financial penalties,
• trengthen and simplify their Reliable Audit Trail
  
• turn a regulatory obligation into an opportunity to optimize business processes.

In a regulatory environment strengthened by Article 123 of France’s 2026 Finance Act, mastering e-invoicing obligations and ensuring ongoing compliance have become strategic priorities for businesses.

Artéva supports organizations at every stage of their compliance journey through Orchestrade® eFacture, its officially registered Certified Platform recognized by the French tax authorities.

Drawing on more than 20 years of expertise in Electronic Data Interchange (EDI) and as a pioneer of electronic invoicing long before the French reform came into effect, ARTEVA helps organizations anticipate regulatory changes, secure their tax compliance obligations across France and Europe, and establish e-invoicing as a sustainable cornerstone of their information systems.