Company: Certified Billing Software In 5 Questions
Are you a professional subject to VAT and using billing software or a cash register system to invoice your services? Did you know that French law requires you to use secure and state-certified software? We offer you a better understanding of this legal obligation as well as the specifics of certified billing software in 5 questions.
1- What does French law say?
The 2016 Finance Act, which came into force in France since January 1, 2018, requires businesses and shops to use certified invoicing software like those from the site jlogiciels.fr.
With this new regulation, some French business owners are no longer allowed to use a spreadsheet like Excel or a simple word processor to issue their invoices.
More specifically, businesses that use a cash register system must equip themselves with invoicing software that guarantees the unalterability, security, and backup of data. This type of software is an essential tool for the accounting management of your company and the automatic processing of your invoices, regardless of your sector of activity.
2- Why were these new rules implemented?
Since January 1, 2018, certain businesses must use certified billing software, or face a fine.
The requirement to use secure and state-certified software for billing was introduced by the French government to combat VAT fraud, which amounts to nearly 17 billion euros per year.
3- Who is affected by this requirement?
Initially, the requirement to use certified billing software was supposed to apply to all businesses subject to VAT.
Ultimately, the State decided to limit this measure to businesses:
- subject to VAT;
- and using a cash register software or system to manage payments received from individuals not subject to this tax (BtoC).
This obligation concerns SMEs, artisans, and merchants who use a cash register system, such as bakers, for example.
Professionals in BtoB (who conduct business transactions with other companies), organizations exempt from VAT, and those benefiting from the VAT exemption scheme are not affected by this obligation.
Moreover, while this new law was originally intended to apply to all software, including billing software for self-employed individuals, it ultimately concerns exclusively cash register software and systems.
4- What are the characteristics of certified billing software?
To comply with the new French legislation, company billing software must meet certain legal standards.
Certified billing software must specifically fulfill the following 4 requirements:
- Data integrity: this means that every modification made to an invoice, such as a change in date or amount, must be saved and notified.
- Data security: all figures must be transmitted in their original state, without being altered, in accordance with the European General Data Protection Regulation (GDPR).
- Data retention: the billing software must ensure the retention of certain accounting documents for up to 10 years.
- Data archiving: all invoices issued using the software must be archived for future consultation or potential tax audits.
5- What are the penalties incurred by offending companies?
Companies that do not comply with these obligations and do not use certified billing software risk a fine of up to €7500 per software or cash register.
When a company is fined, it has 60 days to comply. If it does not, it will have to pay another fine.
To comply with French legislation, your cash register systems must be certified as meeting the standards set by the administration. The software publisher must provide proof in the form of a certificate or an attestation issued by an accreditation body such as AFNOR and LNE.
When choosing your company's billing software, always check for this certification. Not only does it guarantee the seriousness of the software publisher, but it is also mandatory to comply with tax law and avoid a fine.
