Invoices are key documents for keeping any business activity running smoothly. But what happens when important details are left out of an invoice? What are the consequences for a non-compliant invoice? What should a business do in case of billing errors? Here’s what businesses need to know about invoices that don’t meet legal requirements in France.

What’s in this article?

• What is a non-compliant invoice?
  
• What are the penalties for non-compliant invoices?
  
• How to correct an invoice error
  
• How to avoid creating non-compliant invoices
  

What is a non-compliant invoice?

An invoice is non-compliant when it doesn’t adhere to the legally mandated format or rules. For instance, it might leave out required details or include incorrect information. Inaccurate or incomplete invoices can result in a tax fine. Understanding invoicing rules under French law allows businesses to avoid issues later, such as fines that impact cash flow, delayed payments, or extra paperwork.

Article 242 nonies A of the French General Tax Code lists the details all invoices must include.

What are the penalties for non-compliant invoices?

The penalties for non-compliant invoices vary based on the kind of violation.

Issuing an invoice with missing or inaccurate information

You could face a tax penalty of €15 per missing or inaccurate piece of information on an invoice. If there are several mistakes on the same invoice, the total fines are limited to 25% of the invoice amount.

Common mistakes typically involve the date, invoice number, billing address, value-added tax (VAT) amount, and intracommunity VAT numbers. You should double-check these details before issuing invoices to avoid penalties.

Failing to issue an invoice

Not issuing an invoice can result in much harsher penalties – up to €75,000 for an individual or €375,000 for a business.

Failing to invoice again within two years can lead to a fine of up to €150,000 for an individual and €750,000 for a business.

Creating a fake invoice

Creating fake invoices can include hiding or changing addresses, amounts, or identities of buyers or sellers. This can lead to fines of 50% of the total invoice amount, up to a yearly maximum of €375,000 in fines. This fine can be reduced to 5% if the seller shows the business transaction actually occurred. In this case, the cap is reduced to €37,500 per fiscal year.

There are specific financial penalties and criminal charges for VAT fraud, including additional taxes, fines, and prison time in some serious cases.

How to correct an invoice error

You can correct a previously issued invoice by creating a credit note. The new invoice needs its own unique number so you can keep a clear record of all changes.

How to avoid creating non-compliant invoices

To avoid issuing non-compliant invoices, you can:

• Use an invoice template.

• Double-check all invoices you create.

• Promptly correct any inaccurate invoices by issuing a credit note.

• Use billing software to minimise data entry errors.

• Use paperless invoices.

To minimise the risk of issuing noncompliant invoices, you can also use invoicing software that handles all invoicing procedures automatically, no coding required. Stripe Invoicing is a solution that works seamlessly with your current tools, helping you create invoices more easily, automate revenue tracking, and get paid faster.