The question of invoicing as a sole proprietor often comes up! Some people wonder if we can invoice another company or even another individual... But sometimes the question arises, can we invoice an individual!
The answer is simple: regardless of whether you are self-employed or you work in another status, it is quite possible to issue invoices for any type of clients:
- an individual in France,
- an individual abroad,
- company in France,
- company abroad,
- the other is self-employed.
But be careful, follow the billing rules and above all, don't do it at random...
An invoice is a legal, commercial, accounting and fiscal document. What are the rules and required legal notices? What fines are provided in case of control? Avoid any nasty surprises (and penalties) by making sure your bills are compliant!
An invoice is required in the following cases:
- Any provision of services or sale of goods between professionals.
- Any provision of services worth more than 25 euros (including VAT) carried out for an individual.
- Any production, distribution or service activities of government organizations for their own purchases and for professional clients.
- Distance sales, namely exchanges between EU countries: Germany, Austria, Belgium, Bulgaria, Cyprus, Croatia, Denmark, Spain, Estonia, Finland, France, Greece, Hungary, Ireland, Italy, Lithuania, Latvia, Luxembourg, Malta, the Netherlands, Poland, Portugal, Czech Republic, Romania, Slovakia, Slovenia, Sweden, for which the buyer is an individual (in particular, mail order).
- Supply to public auctions of used goods, works of art, collectibles or antiques.
- When a private client requests an invoice.
- In the case of a subcontract, the invoice is issued by the subcontractor. It is issued by the customer in a self-billing situation. A preliminary contract of agency is required.
For a professional engaged in a freelance profession, a payment receipt note is a document replacing an invoice. It is subject to the same rules as an invoice.
In the context of billing between a professional and an individual, it is not an invoice, but a receipt note. It contains fewer elements than an invoice.
Invoice deadline
An invoice must be issued as soon as delivery has been made (on transfer of title rather than physical delivery of the goods) or as soon as services have been rendered.
Invoicing may be periodically established for multiple separate deliveries of goods or services to the same customer. This recurring bill must be established no later than the end of the same month: the billing period cannot exceed 1 month.
The seller and buyer must retain a copy of the invoice for 10 years, as well as the seller's accounting and supporting documents.
What is an invoice?
An invoice is a document certifying the sale of services or goods. To be considered such, it must contain mandatory information and be drawn up in at least 2 copies.
The invoice can be issued in paper or electronic format under certain conditions.
It has several functions:
- Legal: proof of the sale of a service or product sold formalizes your right of claim (that is, the client owes you a sum of money).
- Commercial: This details the terms of sale or service between your client and you.
- Accounting: This is an accounting document.
- Tax: it acts as support for the implementation of certain taxes and tax controls.
Mandatory information on invoices
If the invoice formatting is free, the word texture must be included in the document.
General information
Whether professional or private clients, you must include the following information in your invoices:
1. Yours Name before or after words entrepreneur individual or abbreviations EI and your contact details (and possibly your company name if you have one)
2. Yours SIRET number followed by: Immatriculé(e) au RCS/RM de la ville de XXX.
Your registration registry varies depending on the nature of your business.
Finally, you will probably find on other sites the opportunity for a self-employed company to issue invoices during the registration process with a mention SIREN en cours d'attribution. However, this opportunity has no legal basis and primarily concerns companies, not Auto-Entrepreneur. We advise not to do this!
Only companies with multiple addresses are required to add SIRET to SIREN on their invoices.
3. Invoice date
Be sure to issue invoices as soon as possible after completing a sale or service. This indicates their authenticity at this time. If you wait more than a few days, your account may be challenged in court if a dispute arises.
As you understand, it is strongly recommended not to delay or postdate invoicing.
Instead, make a difference between the invoice date and the delivery date (of your product or service), if necessary. Please note that you have the right to issue “recurring invoices” once a month for recurring services to the same customers.
4. Account number
Each invoice has its own unique number, and all company invoice numbers must be consecutive.
You can choose a personalized numbering system, but the simplest one is often the most effective, especially in the long term.
The most popular is chronological numbering, preceded by the year of issue. If you create many monthly invoices, you can also add a month to the numbering.
Examples:
For the 26th bill for 2024: No. 2024-26.
The next one will be No. 2024-27, etc.
If this is the 26th invoice for February 2024: No. 2024-02-26.
The next one will be No. 2024-02-27, etc.
If there are several pages in the invoice, they must be numbered: n/N (“n” is the serial number of the pages, “N” is the total number of pages of the invoice).
The invoice number must be included on all pages.
Whatever your choice, remember that the most important thing is to maintain order and continuity of invoice numbers without disturbing them, and that no two invoices can have the same number.
5. Customer identity
First name Last name (or company name) and contact details (address of the registered office or place of residence of the individual - if he does not mind).
6. Description of the service or product being sold and a detailed report
- List each product or service on a new line.
- Include the nature, quantity, unit price, and all characteristics that affect the price. For services: materials and service.
- If there are several products or services, it is recommended to make a separate line indicating the total price excluding VAT for all.
- If there is a discount, it must be indicated under each relevant line.
A detailed invoice is not required if the service was the subject of a detailed estimate confirmed by the client. In this case, simply enter the estimate number in the corresponding invoice.
7. Delivery date
This is the date of delivery of the service or product. This indicator should be indicated only if it differs from the date of issue of the invoice.
8. Amount to be paid
The amount to be paid must be stated in both figures and words. If you are liable to pay VAT, you must indicate the applicable rate, the amount excluding VAT and the amount including VAT.
9. Price reduction or fixed discount
If there is a one-time discount for the entire service, you must indicate it under the total amount excluding VAT.
Example:
Total amount excluding VAT: €1,500
Discount provided at a fixed rate: -10
TOTAL amount payable before taxes: €1,350
The total amount to be paid is one thousand three hundred and fifty euros.
If you have made an estimate (devis) for this sale, you must indicate its number on the relevant invoice.
Additional information for professional customers (B2B)
1. Payment term
It's not obligatory. If you do not specify this, your client will be required to pay you within a maximum of 30 days (60 if your client is overseas) after receiving the product or service.
2. Fines for late payment and terms of commercial discounts
Penalty rate cannot be lower than 15.21% (3x the statutory interest rate for the 1st quarter of 2024).
If you are not offering a discount (discount is available for payments made in advance), you can specify: Néant.
3. Fixed compensation for restoration costs
This applies to professional clients only. From 1 January 2013, any company (customer) that pays an invoice after the payment deadline must pay you this compensation, the price of which is set by decree at 40 euros.
Therefore, a mention of this compensation, as well as its amount, must be indicated on the invoice: “In case of late payment, the statutory fixed compensation for compensation costs is applied: 40.00 euros.”
This compensation is paid in addition to late fees. It must be linked to the financial year of its payment.
Attention, failure to mention is punishable by a fine of 15,000 €!
This compensation does not apply to private clients. Therefore, it is recommended to make two account models: one for professional clients and one for individuals, to avoid the risk of error.
Special Mentions
1. Member of the Management Center or approved association
Approved management centers (CGAs) or approved management associations (AGAs) for the Liberals are designed to help and prevent tax difficulties for small businesses.
If so, you should indicate this with the following sentence: Membre d'une association agréée, le règlement des honoraires par chèque et carte bancaire est accepté.
2. VAT deductible
If you use a VAT franchise, you must indicate this on the invoice: TVA non applicable, article 293B du code general des impôts.
3. Insurance
For auto entrepreneurs who have taken out compulsory professional insurance (RC Pro or garantie décennale), it is necessary to indicate the insurance issued for the activity, the contact details of the insurer and the geographical coverage of the contract or guarantee.
A self-employed person who fails to comply with these obligations is subject to a tax penalty of 15 euros per missing or inaccurate statement for each account, up to a maximum of 1/4 of the total invoice amount... in addition to a criminal penalty that can go up to 75,000 euros!
Mentions will be added from July 1, 2024
From July 1, 2024, you will need to add 4 new mandatory details to your accounts. The addition of these references follows Executive Order No. 2022-1299 of October 7, 2022, as part of the generalization of electronic billing. These references are not yet mandatory. However, there is nothing stopping you from anticipating and adding them to your accounts now!
1. Your client’s SIREN number or numéro intracommunautaire
If your client is a professional from France, you must provide their SIREN number.
If he lives in the European Union (outside France), you must provide his internal VAT number.
If it is located abroad (outside the EU), please provide its ID number (if it was provided to you).
Your client, if he is a VAT payer in his country, will only be able to pay your invoice if you yourself have a numéro intracommunautaire. To request your numéro intracommunautaire, contact the tax office (SIE) on which you depend.
2. Category of operation
You must indicate by mention the category of what you sold:
- Goods delivery.
- Provision of services.
- Mixed if your sale covers both categories.
3. Delivery address
If the item's delivery address is different from your billing address, this must be noted on your invoice.
4. Tax payment option
If you have chosen to pay tax by debit, this must be mentioned on your invoice.
Electronic invoice and paper invoice
An invoice can be written on a piece of paper by hand as long as the legal notices and required elements are included.
An invoice is considered electronic only if it is issued and received electronically (via email or a secure online link).
For every seller, sending an invoice by email is an important procedure. Sending an invoice by email is the same as sending an invoice by mail. The information provided must comply with the legal requirements applicable to paper invoices. In paper format, the classic way to send an invoice is through the postal service. From now on it is also possible to send an electronic invoice by email.
Please note: an electronic invoice is not a paper invoice that is scanned and sent by email!
As of January 1, 2026, handwritten invoices will no longer be issued. You will need to complete and submit them electronically.
Identifying your own company as the issuer of the invoice guarantees the document's authenticity. Therefore, you need to ensure that your system and your client's system are compatible for the readability of your electronic signature, if any, and the entire contents of the invoice.
You should also be able to provide proof of receipt by the client (by registered mail or proof of receipt by email, preferably sent via a secure digital application).
The contents of an electronic (or dematerialized) invoice are exactly the same as those of a paper invoice. However, you can only issue an electronic invoice if your customer has given prior consent. He must formalize this consent for you.
Are you a supplier to government agencies (state, local government, government agencies, hospitals, schools, etc.)?
As of January 1, 2020, you are required to send them your invoices electronically. You need to go to the portal Chorus Pro. Once you create your account, all you need to do is fill out and submit your invoice. Please note that this formality is absolutely free.
Account storage
There is legal uncertainty regarding the retention periods for invoices.
According to Article L.102B LPF of the Tax Law and Article L441-9 of the Commercial Code, the storage period for invoices is a minimum of 6 years.
On the other hand, Article L.123-22 of the Commercial Code provides that “Records and supporting documents are kept for ten years. »
Therefore, we recommend that you keep invoices and all accounting documents of your sole proprietorship (account statements, check slips, etc.) for at least 10 years to avoid any inconvenience.
FAQ
What should I do if there is an error on my invoice?
If you made a mistake or want to make a discount after an invoice has been issued, you can cancel or correct it. Please note that you cannot simply delete an invoice. This will lead to a hole in the numbering and will entail penalties in the event of a tax audit.
So what to do? In this case you must:
Write out a new invoice to replace the previous one, which should refer to the canceled one.
Either issue a credit note, i.e. create a new invoice with the same amount as in the erroneously issued invoice, and indicate in the header Facture d'avoir (you can also enter a negative amount, but this sometimes leads to accounting errors).
The number of this new invoice must follow the numbers of your previous invoices.
Should I make an estimate?
An estimate provides the client with an estimate of the cost of a service whose price is variable or the amount of which may not be equal to the standard rate. The date and duration of the intervention are also indicated. If you practice flat rates or standard rates, making estimates is useless.
This is a contract offer. A proposal becomes a contract when your client signs and approves it. It is therefore important to be very clear in your estimates and anticipate vagaries, especially regarding delivery times.
Except for legal obligations, the estimate is free in most cases, however, if you want to bill for this service, it is important to inform your client of the cost upfront.
In the event of an additional service not included in the original estimate, you will need to draw up an amendment to the estimate and agree it with your client.
Should I write general conditions of sale (CGV)?
Only activities related to the provision of services and/or sale of products require mandatory CGV. However, any auto entrepreneur can produce it! In particular, they can serve as evidence in the case of unpaid bills.
CGV's general terms and conditions of sale allow you to strictly formalize exchanges with your customers and personalize exchange terms (payment terms, late payment penalties, etc.). They do not replace the estimate or contract, but complement them.
Can I issue an invoice in foreign currency?
If you have clients abroad whose national currency is not the euro, you can issue invoices in the country's currency, provided that the foreign currency is internationally recognized and convertible.
The exchange rate in euros must be indicated on the invoice, as well as the numéro intracommunautaire numbers: your client's number (required) and yours if the client is subject to VAT in his country.
Please note that your invoice must be in Euros, so you will have to convert it. Well customs recount is established by agreement penultimate Wednesday of the month.
You can also write your invoice in a foreign language, but please be aware that the administration may require a certified translation in case of doubt or inconsistency.
Do I have to sign and indicate the payment method?
Although recommended, it is not required to include your payment method on the invoice.
There is also no legal obligation to sign an invoice, unlike estimates, which must be signed.
Account management
Mandatory information, storage, estimates... Even with all the information at your fingertips, manually managing your accounts can be a headache. This is why invoicing software has become an almost indispensable tool for auto entrepreneurs.
In addition to eliminating manual and complex Excel spreadsheets, they allow you to simplify, automate and centralize your accounting. At the same time, you are confident that your accounts comply with current standards.
You can use my affiliate link when registering with application for maintaining payment documents, which I use.
You will benefit from a free trial extended to 30 days (if you subscribe monthly).
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