AVIMED

The widespread adoption of electronic invoicing in the healthcare and social services sector

By Charles Cardine
Published on 05/12/2023
The widespread adoption of electronic invoicing in the healthcare and social services sector

Invoices are an essential document in the economic life of all entities. The healthcare and social services sector, both public and private, is no exception. The increasing digitalization of exchanges has impacted the creation, transmission, and receipt of invoices. Electronic invoicing is thus gradually becoming the norm. Since 2020, electronic invoicing has been mandatory for public procurement. Now, it will also become the rule for all VAT-registered businesses.

ELECTRONIC INVOICING: FROM AN OPTION TO AN OBLIGATION AS PROVIDED FOR IN TAX LAW

Currently, electronic invoicing remains an option under Article 289 §.VI of the French General Tax Code (CGI), insofar as the transmission and provision of electronic invoices remain subject to the recipient’s acceptance.

However, this option is expected to become mandatory in the very near future. Indeed, in order to combat value-added tax (VAT) fraud, the legislature has decided to mandate electronic invoicing for all VAT-registered businesses when transactions are subject to VAT. With the exception of activities exempt from VAT in the healthcare and social services sector (including, for example, care, hospitalization, and treatment activities covered by the provisions of the French General Tax Code (CGI)), e-invoicing will thus become the norm.

Regarding the “tax” issuance of electronic invoices

Notwithstanding the new mandatory information required, the CGI requires that the authenticity of the origin, the integrity of the content, and the legibility of the invoice be ensured from its issuance until the end of its storage period (Article 289, §V of the CGI).

Since January 1, 2023, Article 289, §VII of the French General Tax Code (CGI) specifies that four methods can be used to meet these requirements. Electronic invoices must be issued:

  • either using an electronic signature with a required security level strictly defined in tax regulations;

  • or using a qualified electronic seal precisely described in tax regulations; - or using Electronic Data Interchange (EDI) in the form of a structured message, in accordance with tax provisions;

  • or by implementing controls that establish a reliable audit trail between an invoice and the delivery of goods or the provision of services on which it is based, as detailed in tax regulations.

Format constraints also exist, namely XML UBL (Universal Business Language Invoice), XML CII (Cross-Industry Invoice), and Factur-X. However, some exceptions appear possible, under certain conditions.

Regarding the Transmission and Reception of “Tax” Invoices

With the reform, electronic invoicing will become mandatory for both the sender and the recipient. Furthermore, electronic invoices must be sent and received via platforms. This may involve a single platform or two separate platforms. These platforms may be:

  • either private platforms – known as Partner Dematerialization Platforms (PDPs), which have been previously registered with the tax authorities. Some applications are already being processed.

  • or the public platform – known as the Public Invoicing Portal (PPF). As the reform currently stands, this should be the platform already in place for invoices related to public procurement, namely CHORUS PRO.

The sending platform will have to perform various checks on the invoicing data and the invoices themselves before transmitting them to the receiving platform chosen by the invoice recipient. The system implemented will rely on a central directory listing the platforms used by invoice issuers and recipients.

Regarding invoice archiving for tax purposes

While invoice retention is mandated by the French General Tax Code (CGI), the procedures for this archiving are not clearly defined. It is therefore unclear whether archiving can or must be a service provided by the platforms. If so, questions of contractual commitments and liability will undoubtedly arise, particularly between private and public platforms.

Finally, the reform introduces a new requirement: e-reporting

The other major innovation of the reform concerns the reporting to the tax authorities of data relating to the information contained in electronic invoices issued for sales and purchases not subject to the mandatory electronic invoicing requirement but taxed under French VAT or made from France.

This data must be sent to the tax authorities by the public platform, which will either have collected it directly if it is used as a platform for issuing or receiving invoices, or will have received it from the private platform(s) used by the parties. The objective of this new requirement is, ultimately, to enable the pre-filling of VAT returns for taxable persons.

And now

The implementation of electronic invoicing and e-reporting obligations is now scheduled to begin on September 1, 2026, for large companies, and then in 2027 and 2028 depending on the size of the organization. Given the significant impact of this reform on all stakeholders, and the rapidly approaching deadlines, it is essential that all entities in the healthcare and social services sector prepare for it, bearing in mind that the taxable person will remain solely responsible in the event of a failure to meet their tax obligations. A word to the wise…

Anne CANTERO, Of Counsel, PhD in Law, and Pascal AGOSTI, Partner, PhD in Law, CAPRIOLI & Associés Law Firm, Member of JURISDEFI

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