Invoice requirements: references to national or EU legislation?
To justify the application of a VAT exemption or the reverse charge mechanism, businesses may currently refer either to the relevant national provision or to the EU VAT Directive, in accordance with Article 242 nonies A(12) of Annex II to the French General Tax Code (Code général des impôts – CGI).
Until now, businesses have therefore been able to choose between referring to the CGI and referring to the VAT Directive 2006/112/EC.
As of 1 January 2027, the VAT provisions of the CGI will be repealed and incorporated into the new French Tax Code on Goods and Services (Code des impositions sur les biens et services – CIBS).
For further information on this reform, see: CIBS and CGI: What are the practical implications for VAT for businesses in France?
One of the main implications of this reform concerns the VAT wording required on invoices. Businesses that currently refer to articles of the CGI on their invoices to justify a VAT exemption or the application of the reverse charge mechanism will need to update these references and instead refer to the corresponding provision of the CIBS or to the VAT Directive.
A transitional grace period will apply until 30 June 2028, during which businesses may continue to refer to the former CGI provisions on their invoices. However, this transitional period is not intended to be used until its expiry; rather, it is designed to give businesses sufficient time to anticipate and prepare for the changes required to ensure compliance.
Businesses are therefore advised to begin the necessary steps as soon as possible to update their invoicing software settings, enabling them to issue invoices that include the new legally required wording.
Why favour EU legislation?
Businesses that currently refer to the CGI on their invoices must now consider which reference to use going forward: the new CIBS provisions or the EU VAT Directive.
At VAT Solutions, we recommend using the references set out in the VAT Directive, as they offer greater international clarity and greater long-term stability.
- Greater international clarity: References to national legislation are generally well understood by French businesses, accountants and legal professionals. However, they may be difficult for foreign customers to interpret, as they may not be familiar with French legislation. By contrast, the VAT Directive provides a common reference point across EU Member States, making VAT references easier to understand across borders.
- Greater long-term stability: The numbering of the VAT Directive’s articles has remained stable since 2006, whereas national legislation may change over time. The transition from the French General Tax Code (Code général des impôts – CGI) to the French Tax Code on Goods and Services (Code des impositions sur les biens et services – CIBS), and the extensive discussions surrounding this transition, illustrate this point. Indeed, the numbering initially planned for the CIBS has already been amended once by ordinance. Referring to the VAT Directive therefore provides a more enduring reference point and helps limit the need to update invoice wording in response to changes in national legislation.
|
Transaction |
Previous wording under the CGI |
CIBS |
VAT Directive |
|
Sale subject to the reverse charge mechanism |
“Reverse charge – Article 283(1), second paragraph, of the CGI” |
"Reverse charge – Article L215-5 of the CIBS*"
|
“Reverse charge – Article 194 of Directive 2006/112/EC” |
|
Intra-Community supply of goods |
“Exempt intra-Community supply – Article 262 ter I of the CGI” |
"Intra-EU supply of goods – Article L213-13(1) of the CIBS*" |
“Exempt intra-Community supply – Article 138(1) of Directive 2006/112/EC” |
|
Export |
“Exempt export – Article 262 I of the CGI” |
"Exempt export – Article L213-13(2) of the CIBS*" |
“Exempt export – Article 146(1) of Directive 2006/112/EC” |
|
Services covered by the general rule: customer established in the EU
|
“Reverse charge – Articles 259(1) and 283(2) of the CGI” |
"Reverse charge – Articles L211-92 and L215-5 of the CIBS*" |
“Reverse charge – Articles 44 and 196 of Directive 2006/112/EC” |
|
VAT exemption under the small business scheme |
“VAT not applicable – Article 293 B of the CGI” |
“VAT not applicable – Article L233-3 of the CIBS” |
“VAT not applicable – Article 284 of the VAT Directive” |
*Note: The legal references and their correspondence should be verified against the applicable legislation before publication or implementation.
When should invoice wording be updated?
Until 31 December 2026, invoices must refer to the relevant provisions of either the CGI or the VAT Directive.
From 1 January 2027, and no later than 30 June 2028, businesses must update their invoice wording to refer either to the new CIBS provisions or to the VAT Directive.
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