Electronic invoicing first appeared in the early 1990s. Although rarely used at the time, the global development of the internet and broadband access changed the game, and it is now increasingly popular with businesses. Why? The digitization of invoices reduces administrative burdens and enables companies to increase productivity. The legislator has therefore decided to gradually impose electronic invoicing between French companies subject to VAT, starting on July1 , 2024. As part of this reform, several invoice formats will be accepted, including Factur-X, a format with a somewhat barbaric name, but one that offers many advantages. We tell you everything you need to know about this format, which is particularly well suited to small and medium-sized businesses.
Factur-X: what is it all about?
The Factur-X format is an electronic invoice format used by a growing number of companies.It is a "mixed" or "hybrid" French-German standard that complies with the European semantic standard EN16931. In practical terms, this means receiving an invoice that includes two formats in a single document:
- A PDF/A-3 file that can be read in the usual way by the user, who can then check the accuracy of the information.
- A set of structured data in XML format that enables automated invoice processing. The structured part allows a company to automatically integrate the invoice into its own management system, such as an ERP system, or into its accounting software.
Remember that there are three types of electronic invoices:
- Invoices in "unstructured formats," such as PDF or JPEG. These formats will no longer be valid once the electronic invoicing reform comes into effect.
- Invoices in "structured format," consisting solely of structured data that meets the requirements of EDI (electronic data interchange) and the tax authorities.
- Hybrid format invoices such as Factur-X, which contain human-readable information and structured data that can be read and understood by a machine.
Factur-X complies with European semantic standard EN16931.
The abundance of electronic invoice models in Europe and the lack of interoperability result in extreme complexity, legal uncertainty, and significant operating costs for companies that use electronic invoices in several EU Member States. This observation has led European standardization bodies to propose a semantic data model for all elements deemed "essential" to a standardized European electronic invoice: this is the EN16931 standard.
This standard allows data to be structured and thus have the same format for all European Union member states. This saves valuable time, as there is no longer any need to rework documents and convert data into the "right" format! Technologically neutral to avoid unfair competition and compatible with international standards for electronic invoicing, the EN16931 standard also helps foreign suppliers avoid breaking the law.
However, the structured data in Factur-X perfectly complies with the European semantic standard EN16931. The Factur-X XML file contains all the information required by this standard. It is structured according to a model that contains more than 165 possible data fields, complex calculations, and numerous business rules that comply with European tax regulations.
Factur-X: numerous advantages
Factur-X, like invoices in "structured format," is strongly recommended by lawmakers because it allows companies to process invoices automatically. There are many advantages:
- Reduced administrative costs thanks to the elimination of paper documents
- Time saved on time-consuming tasks, allowing the CFO/accounting team to focus on high value-added tasks
- A reduction in payment terms
- A reduction in disputes often caused by manual data entry errors
- Securing information
The Factur-X format is accessible to all companies, regardless of their size, and has the advantage of retaining the PDF format that a company's employees are used to working with.
Factur-X is intended for all companies wishing to automate their processes. However, not all companies have the same needs when it comes to managing their suppliers' invoices. Larger companies have specific "business" needs, with information provided that smaller companies do not require. This is why the Factur-X format offers five main XML data profiles that correspond to different expectations:
- Minimum profile: equivalent to the basic data required by the Chorus Pro platform for invoices issued to the public sector
- BASIC WL profile: "No lines," contains only the header and footer commonly used by buyers
- Basic Profile: BASIC profile with invoice line details
- EN16931 profile: all data specified in the European semantic standard EN16931
- EXTENDED profile: EN16931 profile with additional data (currently being drafted)
These five profiles enable companies to choose the one that best suits their needs. This profile distinction is most beneficial to microbusinesses and SMEs, which can access this standardized European electronic invoice format without changing their work processes or investing in new software that would enable them to read the EN16931 profile, for example.
Docoon is positioned as a Partner Dematerialization Platform (PDP) registered and certified by the government. We are able to process all your billing flows, regardless of the electronic invoice format chosen, including the Factur-X format. Contact us.
(*) Since this article was written, the government has postponed the widespread adoption of electronic invoicing, which will be implemented in two stages starting in 2026:
PHASE 1: from September 1, 2026, for all companies receiving goodsand for large and medium-sized companiesissuing goods
PHASE 2: from September 1, 2027, for small and medium-sized companies and micro-enterprises.
