2024 reform: how to choose your electronic invoicing platform?
The obligation of electronic invoicing as of July1, 2024 brings in new players. The new scheme of transmission and reception of electronic invoices foresees that companies will send them to their customers through a dematerialization platform. They will no longer be able to do it directly between themselves! Public Billing Portal (PPF), Partner Dematerialization Platforms (PDP) or Dematerialization Operators (DO)... the choice of these intermediaries is wide, thus penalizing companies that can quickly feel disoriented in this new ecosystem. What type of platform should you choose? What are their differences? Here's how it works.
PPF, PDP, OD: how to distinguish them?
Public Billing Portal (PPF): the DGFiP platform providing a minimal service
Since the beginning of 2020, companies dealing with the public administration have been submitting their invoices on the Chorus Pro platform. It is therefore only natural that this platform should form the basis of the future PPF, subject to a few adaptations.
Eventually, the PPF will centralize the invoice information collected from the PDPs or companies and will transmit to the tax authorities all the data useful for drawing up VAT declarations and for combating fraud.
It will also contain a directory of PDPs that have been approved as such.
In terms of services, the PPF will provide a limited - but free - service to businesses, whereby they can file, transmit and receive their electronic invoices.
Platforms of Dematerialization Partners: the multifunctional platforms approved by the DGFiP
From September 2023, private players wishing to become PDPs will be able to file their application with the DGFiP. If the tax authorities accept that these platforms meet the criteria expected of a PDP, they will issue a registration valid for 3 years.
What is special about these platforms? Unlike the PPF, they are not free of charge and will be equipped with multiple functionalities. In practice, the company will deposit its invoice on the PDP which will transmit it directly to its recipient and will extract its data to send them to the PPF.
Dematerialization operators: intermediaries interoperating with PDP and PPF
DOs do not need to be registered to process invoices from their clients. However, they do not have the same status either. A company can naturally go to a DO, such as a software editor, a pre-accounting or commercial management tool, to generate an invoice. Nevertheless, it will be quickly limited since the DO will not be able to transmit it directly to the tax authorities but will have to file it on the company's PPF or PDP.
Electronic invoicing platforms: what are the main criteria for choice?
The cost of the platform
If your company is just starting out or does not have the resources to pay for a PDP, you can always use the PPF service which is free. In return, you will only benefit from a minimal service. The cost of a PDP will depend on the functionalities offered by the player in question and the rates charged by the competition.
Additional services
In addition to the possibility of issuing and receiving electronic invoices, as well as extracting the data to be transmitted to the DGFiP, the PDPs - unlike the PPF - can offer additional services such as :
- The diversity of invoice formats offered (Factur-X, UBL, CII, etc.) and the possibility of converting an invoice into different formats,
- Automation of electronic invoice management,
- Direct payment of supplier invoices,
- Automatic character recognition and video coding,
- Data security,
- The provision of a dashboard allowing to follow the deadlines of the customers and suppliers invoices.
The compatibility of the platform with existing tools
Companies already use tools on a daily basis that may be duplicated by some of the features offered by a PDP. If you wish to use this type of platform, you must ensure that the chosen PDP is compatible with the tools in place.
Data security
The government has assured that the data collected in the context of transactions between professionals on the PPF will be used by the public administration to carry out its missions to fight fraud and verify VAT returns.
On the PDP side, the security of the computerized system and data will be ensured by platforms that have at least been SecNumCloud and ISO 27001 certified.
Why is it necessary to anticipate the choice of the billing platform?
July1, 2024 is coming up fast. If your company is already digitally mature, electronic invoicing will have less impact than if you still operate largely in paper format. You may need to rethink your organization and plan internal training to familiarize employees with these new tools. That's why it's a good idea to start thinking about it now.
Electronic invoicing offers many advantages such as smooth exchanges with your customers and suppliers, or real-time monitoring of your cash flow.
And Freedz in all this?
Using Freedz means anticipating the 2024 reform and choosing a future PDP that meets the expectations of the State. Moreover, we usually participate in the DGFiP workshops in order to be ready on D-day. Our platform has already anticipated certain requirements of the administration in view of the obligation of the electronic invoice. Electronic archiving with legal value, consistency control of mandatory invoice data, refusal of non-compliant supplier invoices... Freedz combines security, productivity and efficiency. Are you ready to make your choice on the future Freedz PDP? Ask for your demo now !
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Our most popular free resources:
White paper: the essentials for a successful digital transformation of your accounts payable
This white paper provides answers to the main questions you may have when making the transition to electronic invoicing, as well as the points to watch out for in order to successfully complete your project.
The Guide to 2024: everything you need to know about the widespread use of electronic invoicing
This guide contains all the information you need to understand the new legislation and to anticipate this change.
Case Study: Improve Accounts Payable Efficiency While Maintaining Control
In order to improve its supplier relations and enhance the value of its employees' missions within the accounting department, Halpades has chosen to completely dematerialise its supplier invoices thanks to Freedz.