As the implementation of the finance law approaches, one question seems to be on everyone's lips: what exactly is a PDP? Although lawmakers have postponed the implementation of mandatory electronic invoicing 1 until 2026 to give companies time to prepare under the best possible conditions, the term "PDP" still seems unclear to many companies. Are you still unclear about how the reform will work between its various players (PPF, PDP, tax authorities)? Don't panic! The purpose of this article is precisely to explain how a PDP works and its role in managing invoice flows.
Please note: since this article was written, on October 15, 2024, the government announced a significant reduction in the scope of the PPF (Public Invoicing Portal). This public platform, initially designed to issue, receive, and manage electronic invoices for businesses, will now focus solely on two functions: the business directory and the tax data hub for e-reporting. As a result, all businesses will now have to use an approved platform (e.g., PDP) to exchange invoices and report VAT.
Background to the electronic invoicing reform
The electronic invoicing reform is part of the government's efforts to combat VAT fraud, simplify administrative processes (no more paper invoices, saving time), improve the traceability of economic activities within the country, and boost the competitiveness of businesses, in particular by reducing payment times. It is based on two pillars: the obligation for businesses to receive and issue invoices in electronic format, and the establishment of an operational framework involving two categories of players: the Public Invoicing Portal (PPF), also known as Chorus Pro, and PDPs, an acronym that stands for Partner Dematerialization Platforms.
You probably already exchange invoices with your customers and suppliers electronically. Please note that as part of the reform, PDF invoices will no longer be permitted. Only structured formats (Factur-X, UBL, and CII) will be officially considered compliant and valid.
To issue and receive electronic invoices, VAT-registered companies based in France will have the choice between using the free Public Invoicing Portal or paying for the services of a Partner Dematerialization Platform. The PPF is comparable to Chorus Pro, which companies currently use to send their invoices to public bodies. The latter will eventually become the PPF. It is authorized to receive and transmit invoices in electronic format and also to collect payment data for transmission to the tax authorities.
To avoid technical and administrative complications, the government wanted to give economic actors the option of using private partners, duly certified by the government, known as PDPs. This is also a way of ensuring that, in the event of a PPF malfunction, the system remains resilient, since PDPs acting as trusted third parties for the DGFiP will be able to continue exchanging invoices between themselves.
PDP, how does it work?
Companies will be free to use the services of a PDP that acts as an intermediary between the company and the tax authorities. They will be able to check the validity of invoices issued (e-invoicing), transmit information to the tax authorities via the PPF (e-reporting), if necessary, and finally, send the invoice to the recipient.
Conversely, they will receive documents on behalf of recipients, check their validity, and then forward them in a readable format, being able to convert the format received into the format desired by the recipients. They also offer the possibility of storing invoices and all related data. They are veritable electronic safes.
On Thursday, January 18, 2024, the tax authorities published an initial list of operators applying for Partner Dematerialization Platform status. Some candidates have also applied to participate in a pilot testing phase. The goal is to test all use cases related to the deployment of electronic invoicing under real-world conditions over the coming months. This involves the PPF, companies applying for PDP status, user companies, and solution providers.
WHITE PAPER
Switch to electronic invoicing,
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The practical implementation of the reform of the purchasing cycle (Purchase 2 Pay) in four stages
PDP: What else will they do?
Unlike the Public Invoicing Portal, which offers essential invoice exchange features , a PDP offers additional services designed to automate end-to-end invoice exchange flows, both for sending and receiving invoices. What advantages do they offer?
- Compliance and security of exchanged data flows. PDPs are platforms approved by the tax authorities for a renewable period of three years. How do you become a PDP? To be registered as a PDP, operators must pass an audit and meet very strict specifications, thereby ensuring the highest level of compliance and security for companies in the electronic invoicing process. All PDPs must be ISO27001 certified at the time of their registration application and are required to host data in a SecNumCloud data center.
- Handling of all invoice flows. Unlike PPFs, PDPs will be able to receive and send invoices to companies not subject to VAT and to B2C customers.
- Support for the EDI format. Only a PDP can enable the exchange of invoices in formats other than the three standard formats: Factur-X, UBL, and CII 1. 2. This allows companies to convert one format (e.g., from accounting software or an ERP system) to another, thereby creating invoices in the formats expected by buyers. This is a competitive advantage for companies that already exchange invoices in another format, such as EDI (Electronic Data Interchange), and a real asset for companies that collaborate with national and international partners, who often use invoicing formats specific to their country or sector of activity.
- Management of international flows. PDPs will be able to list companies in a public, global directory. This means that French companies will be able to receive invoices from foreign companies via the PEPPOL international network. This is an important issue for large groups with foreign subsidiaries.
- Secure archiving. A PDP archives all invoices (including international ones) in accordance with legal requirements for document storage and access. Its services are 100% secure: the confidentiality, integrity, and availability of documents are guaranteed.
- Management of other document flows. PDPs already plan to manage the digitization of other document flows (delivery notes, purchase orders, etc.).
- Registration in the official directory. Only PDPs will be authorized to register a company directly without going through the Chorus Pro public portal. Important note: PDPs will be able to delegate identity verification to third parties (accountants, banks, etc.). This will speed up and facilitate the registration of nearly 7 million VAT-registered companies.
- Interoperability. The PDPs will be interconnected with each other and, of course, with the PPF. This will make it easier for businesses to approach the reform.
PDP: at the heart of data flows
In the system devised by the government for the reform, PDPs are placed at the center of a Y-shaped diagram. They interact with the supplier, the customer, and the Public Invoicing Portal, whose role is limited to exchanging invoices based on the minimum required formats and centralizing the data required by the tax authorities. PDPs will have to enable their customers to provide the reporting information required by the tax authorities (e-reporting flows) by extracting the necessary data from invoicing flows or sales information. This information will be aggregated by reporting period and transmitted to the authorities via the PPF.
The players in electronic invoicing
You now know what a PDP is, its role, and its attributes in the context of the reform for the dematerialization of invoices in electronic format. Here are all the players involved in this reform:
The Public Invoicing Portal (PPF), also known as Chorus Pro, plays a central role. Free for its users, it is authorized to receive and transmit invoices in electronic format and collect payment data for transmission to the tax authorities. Unlike PDPs, the PPF does not offer additional paid services, making it an accessible option for all businesses.
Partner Dematerialization Platforms (PDPs), meanwhile, are private entities that offer additional value-added services alongside invoice transmission for companies seeking more personalized electronic invoicing solutions. These services may include advanced invoice management and analysis features. PDPs set their own prices and are interconnected not only with each other, but also with the PPF and other players in the system.
The tax administration plays a regulatory and supervisory role in this system, ensuring that transactions comply with regulations and that data is collected appropriately for tax purposes.
Although Dematerialization Operators (DOs) are private entities and are not directly recognized by the government as authorized to issue invoices, they act as intermediaries, enabling companies to prepare their invoices for transmission via a PDP or PPF. DOs only play an intermediary role in the processes involved in electronic invoicing.
As mentioned at the beginning of this article, lawmakers recently announced that the PPF would no longer act as a transmitter. Companies will therefore be required to use a private platform to send and receive their invoices. As a result, dematerialization operators (ODs) will no longer act as intermediaries between companies and the chosen dematerialization platform (PDP or PPF).
Together, these players form an interconnected network that facilitates the transition to electronic invoicing, offering businesses a range of services tailored to their specific needs while ensuring compliance with legal and regulatory requirements.
Partner Dematerialization Platforms represent a crucial step in the evolution towards more efficient and modern document processes. By adopting these solutions, companies can not only optimize their document management, but also strengthen their partnerships by facilitating information exchanges in a secure digital environment. This vision is shared by Cyrille Sautereau, President of FNFE (National Forum for Electronic Invoicing and Electronic Public Procurement): "PDPs are set to become daily contacts for companies and a key cog in their management processes. They will liaise with the tax authorities on the one hand, and with their customers and suppliers on the other."
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(1) Reform schedule: As of September 1, 2026, all companies will be required to receive electronic invoices.
As of September 1, 2026, large companies and medium-sized companies (ETIs) will be required to issue electronic invoices.
As of September 1, 2027, small and medium-sized enterprises (SMEs) and micro-enterprises will be required to issue electronic invoices.
(2) The PPF will only accept the so-called "minimum base" formats: Factur-X, UBL, and CII.
