Establishing Invoices in France (and Using Them to Reduce Disputes and Non-Payment)

Why invoices matter more than you think?

In France, the invoice is not merely an accounting document. It is a legally regulated instrument that serves three functions at once:

1. Commercial transparency (what was sold, at what unit price, on what terms).

2. Tax compliance (especially VAT: when due, on what base, and with what mandatory disclosures).

3. Evidence management in the event of dispute or debt collection (demonstrating the reality, scope, and pricing of the transaction).

This triple role explains why French law is strict on invoices—both for the obligation to issue them and for the information they must contain. A missing invoice, or an invoice missing a key mention, is not just “sloppy admin”: it can trigger administrative penalties, tax penalties, and—most importantly for your cashflow—weaken your position in litigation when a customer refuses to pay.

This article gives you a clear, business-oriented roadmap: what is mandatory, what is prudent, what is changing soon (notably e-invoicing), and how to structure your invoicing process to prevent contestation and accelerate recovery.

1. When is invoicing legally mandatory in France?

A) B2B: invoice is mandatory (and regulated)

For any sale of goods or supply of services carried out for a professional activity, issuing an invoice is mandatory under the Commercial Code. The invoice must be issued and must include a set of compulsory mentions.

Failure to issue an invoice—or omission of required information—may lead to an administrative fine that can reach €75,000 for an individual and €375,000 for a company, with higher ceilings in case of repeated breaches within two years.

Practical point (debt-prevention): if you are dealing with a customer you do not fully trust, the invoice is necessary but rarely sufficient alone to win a claim. Courts frequently require proof of the underlying commitment (order, contract, acceptance, delivery/performance). Your invoicing should therefore be designed as part of an evidence chain.

B) VAT perspective: invoicing obligations also exist (sometimes beyond B2B)

Separate from the Commercial Code, French VAT rules impose invoice requirements for many transactions performed by a VAT-taxable person, including certain cross-border operations.

In practice: you must satisfy both the commercial law requirements (Commercial Code) and the VAT requirements (Tax Code + implementing provisions). When the two overlap, you comply with the strictest set.

C) B2C: different regime—often a “note” rather than a standard invoice

For services rendered to private individuals, French rules require a written note (in duplicate) above a threshold (commonly €25 incl. VAT), with a minimum set of information.

Non-compliance may trigger an administrative fine under consumer law.

Also note: “cash register tickets” may serve as a note if they contain the mandatory information, but since August 2023 printing is no longer automatic and is done at the customer’s request.

2. Core mandatory invoice content (Commercial Code): what your invoice must show

For B2B transactions, the Commercial Code requires invoices to contain specific information—many of which are directly relevant to dispute prevention: identity of parties, date, numbering, description, quantities, price, due date, and late payment terms.

The essentials, explained in a “risk-control” way

(1) Seller identification
Your legal name (company name), registered office address, and billing address if different are not optional: errors here can create friction and sometimes excuses to delay payment.

(2) Buyer identification
The customer’s name and address (and billing address if different) should be accurate. From a recovery standpoint, this is not cosmetic: it helps prevent “wrong entity” arguments and supports formal notices and legal service.

(3) Invoice number
A unique number based on a chronological and continuous sequence is essential for legal compliance and auditability. It also matters in court: it supports your credibility and the traceability of your accounting.

(4) Description of goods/services + quantities
French practice expects invoices to be sufficiently precise. Overly generic wording (“services”, “machine”, “assistance”) is an avoidable weakness: it can allow the debtor to allege uncertainty, non-performance, or non-conformity.

(5) Unit price (excl. VAT), reductions, and totals
The invoice must show the unit price and specify discounts or reductions acquired at the date of the transaction.

(6) Payment due date
Invoices must indicate the date on which payment must be made. From a debt-collection perspective, this is decisive because it anchors (i) default, (ii) late payment interest, (iii) the €40 recovery costs indemnity, and (iv) escalation steps.

(7) Late payment penalties + recovery costs indemnity
B2B invoices must mention the applicable late-payment interest rate and the fixed recovery costs indemnity (commonly €40).

3. VAT-specific mandatory mentions: where many businesses still get caught

VAT invoicing rules are strict. Beyond the Commercial Code, the tax framework requires a range of VAT-driven mentions (VAT numbers, rate, taxable base, exemptions, reverse charge mentions, etc.). The implementing provisions detail what must appear on invoices.

Frequent VAT-related compliance failures that later fuel disputes

• Missing VAT number (supplier, and sometimes customer depending on the operation).

• Wrong VAT rate or lack of rate breakdown (particularly when multiple rates apply).

• No legal basis for exemption when invoicing VAT-exempt transactions.

• Reverse charge (autoliquidation) not properly stated where applicable.

These points are not only “tax risk”: they can become commercial leverage for a debtor who wants to stall (“invoice not compliant, we cannot process it”). You want to deny them that leverage.

New mandatory mentions (recent additions)

French rules have added invoice mentions in recent reforms (for instance, items such as SIREN, delivery address if different, and certain VAT options). Because administrative practice can evolve, businesses should monitor the official tax guidance and ensure templates are updated.

4. Penalties for invoicing failures: commercial fines and tax fines

A) Commercial-law administrative fines

The Commercial Code provides for substantial administrative fines for failure to issue an invoice or for missing mandatory mentions.

B) Tax penalties: potentially very severe

The Tax Code provides for a penalty that can reach 50% of the transaction amount in certain cases involving failure to issue mandatory documents and failure to record the transaction properly, with mitigations in some circumstances.

Risk management takeaway: if your organisation treats invoicing as a mere back-office task, you can end up with a dual exposure: (i) regulatory sanctions and (ii) weakened debt recovery.

5. E-invoicing is coming: what changes from 2026–2027 (France)

France is rolling out mandatory electronic invoicing and e-reporting in stages. Official tax guidance confirms the staggered timeline starting 1 September 2026 for large companies and mid-sized companies, and 1 September 2027 for micro/small/medium enterprises.

Why this matters for dispute prevention

E-invoicing tends to improve traceability, timestamps, and audit trails (when properly implemented). That can strengthen your evidentiary position. But it also means:

• Your invoice templates and data fields must be structured correctly.

• Non-compliant data will be rejected or delayed by systems—creating payment friction.

• Internal discipline becomes essential (order references, delivery confirmation, acceptance triggers).

Practical recommendation: treat the e-invoicing transition as a cash-collection project, not only a compliance project.

6. The invoice in court: necessary, but often not sufficient

A critical point for businesses pursuing unpaid debts in France: an invoice does not automatically prove the debt. Courts often recall that a creditor cannot create proof for itself solely through its own unilateral documents.

This is why your invoicing process must be linked to documents showing the customer’s commitment and acceptance: signed order, contract, validated quote, email acceptance, delivery proof, service completion report, or acceptance certificate.

Case law signals you should understand (in plain terms)

• When invoices were sent to an entity (e.g., a franchisor) that never clearly accepted being the debtor, silence alone was not enough to bind that third party.

• When a third party pays some invoices, that does not necessarily mean it has committed to pay all future invoices arising from the contract.

Meaning for your business: do not let “habit” replace formalisation. If you supply multiple entities within a group, make sure you document who orders, who receives, and who undertakes to pay.

A high-impact example for service providers (including professionals)

Courts can require that invoices reflect the reality of services rendered with sufficient detail. For instance, case law has confirmed that even when fees are forfaitary and periodic, invoices must still comply with the commercial invoicing rules and identify the services and their dates.

Debt-collection angle: a precise invoice reduces “I don’t know what this is” disputes and strengthens your credibility before a judge.

7. “When should we invoice?” and how timing affects recovery

A) The baseline: invoice upon delivery or completion

As a principle, invoices should be issued at the time the supply of goods is delivered or the service is performed (subject to certain sector practices and VAT rules).

B) Periodic (grouped) invoicing: permitted but controlled

Grouped invoicing (e.g., monthly billing for multiple deliveries/services) may be permitted if conditions are met, including timeframe and payment term constraints. This can be operationally efficient but creates a risk: the longer the time between delivery and invoicing, the easier it is for a debtor to contest details.

Good practice: if you invoice periodically, ensure you maintain:

• delivery notes or service reports for each delivery/operation,

• a clean mapping from each delivery to the periodic invoice line items,

• internal controls so no delivery is billed without proof.

8. Record retention: keep your invoices long enough to win, not just to comply

From a litigation perspective, commercial obligations may be time-barred after a number of years depending on the situation, but retention is also governed by tax and accounting rules.

• Commercial prescription is commonly referenced at 5 years for obligations arising in commerce (with nuances and specific regimes).

• Tax retention is at least 6 years in many cases.

• Accounting documents and supporting records are generally to be kept 10 years.

Case law has clarified that the obligation to keep archives for a minimum period does not mean a duty to destroy them immediately afterwards—keeping longer can remain useful as evidence.

Business takeaway: your retention policy should be driven by risk. If you sell products with long warranty tails, long projects, or recurring disputes, “minimum compliance” retention may be commercially naïve.

9. Turning invoicing into a dispute-prevention system (what to implement)

Here is a practical, non-academic framework that works well in real life. It is intentionally simple: it is designed to keep customers from having “legal excuses” to delay payment.

Conclusion:

If you want fewer disputes and faster payment in France:

• Issue invoices systematically in B2B: it’s mandatory and regulated.

• Make invoices complete: parties, numbering, precise description, unit price, due date, late payment interest, and the recovery costs indemnity.

• VAT mentions matter: missing or wrong VAT information creates delays, disputes, and tax risk.

• An invoice alone may not win in court: keep proof of the order and proof of delivery/performance.

• Prepare for e-invoicing: France starts phased mandatory e-invoicing/e-reporting from 1 Sept 2026 and 1 Sept 2027 depending on company size.

• Archive properly: retention rules can run 6–10 years (tax/accounting), and keeping evidence longer can be strategically useful.