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e-Invoicing, Regulations
November 27, 2024

Abandon of the PPF: 5 Major Impacts on France’s Tax Reform

On October 15, the French tax administration officially announced the partial abandonment of the PPF (Public Billing Portal), a decision anticipated for several weeks. This marks a significant shift in the country’s tax reform aimed at digitizing business invoicing. Why was this decision made, and what are its consequences? Here are the five main impacts to note.

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facturation électronique

Why Was the PPF Abandoned?

From its inception, the PPF faced significant challenges:

  • Escalating development costs, which consistently increased over time.
  • Deadlines postponed twice to allow partner platforms to prepare.

To avoid further delays, the administration chose to scale back the PPF’s scope, keeping only two of its three initial core functions:

  1. Interoperability directory to connect Partner Dematerialization Platforms (PDPs).
  2. Data concentration for billing and transactions.

The third function, a free invoicing portal, has been abandoned. The administration justified this decision by stating that the PDP ecosystem is now robust and dynamic enough to meet business needs.

5 Key Impacts of Abandoning the PPF

  1. Regulatory Updates Expected in 2025

    The current decree defining the PPF’s role will need to be revised. This could also pave the way for additional regulatory simplifications and adjustments.

  2. Update of External Technical Specifications

    The PPF-related technical specifications are no longer applicable. A new version focusing on the directory and e-reporting is expected by December 15, 2024.

  3. Strengthened Functional Governance Required

    Interoperability among PDPs can no longer be limited to technical aspects. Close collaboration between the administration, FNFE, PDPs, and a potential local Peppol Authority is essential.

  4. Impact on Reform Pilots

    The pilots initially planned for the second half of 2025 must be reorganized. Tests will now focus on directory services (January 2025) and declaration services (January 2026).

  5. Consequences for Businesses and Dematerialization Operators (DOs)

    • For businesses, the impact is minimal: according to our June 2024 survey, 78% already planned to use a PDP.
    • For DOs, the change is more significant, as they must quickly select a PDP to ensure compliance.

A Strategic Choice to Ensure Reform Success

This decision allows the administration to stay on schedule with the tax reform while minimizing its impact on businesses already supported by service providers. While the loss of a free portal may seem disadvantageous, it ensures a smoother transition and leverages a mature and effective ecosystem.

 

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