France tightens tax compliance rules for businesses

A French law enacted on 25 June 2026 (Article 36) lengthens the statutory retention period for fiscal documents from six to ten years. The rule applies to bookkeeping records, accounting papers, VAT deduction proofs and audit‑trail elements and concerns companies and self‑employed professionals. Non‑compliance can result in a €10 000 fine, and the new requirement takes effect for documents whose current retention expires on 1 January 2027.

From 1 September 2026, all French businesses subject to VAT must be able to receive invoices electronically. Large firms and mid‑size companies must also issue electronic invoices and submit transaction data (e‑reporting) to the tax authority. Small businesses have an additional year to start issuing electronic invoices, with a deadline of 1 September 2027. Invoicing must be processed through government‑approved digital platforms, and invoices must include the client’s SIREN number, operation category, VAT payment option and, when relevant, the delivery address. Penalties are €15 per non‑compliant invoice (capped at €15 000 per year) and €250 per missing e‑reporting transmission (also capped at €15 000). A first‑offence tolerance applies if the breach is corrected within thirty days.