Invoicing isn’t only something SMEs and large companies have to do. As a freelancer, you, too, need to send invoices each time a mission ends.
But between the mandatory legal mentions, VAT and the different possible ways to invoice, maybe you’re feeling a little lost?
We get the feeling. So, to help you get a better grasp of how French invoicing works, here’s a complete article dedicated to the subject.
According to article L441-9 of the French trade code, or Code de commerce, an invoice is mandatory for any transaction between professionals.
As a freelancer, most of your clients are likely companies. So, making sure you send accurate and legally compliant invoices each time a job ends is a must.
Do you work more for individuals? Somewhat different rules apply here.
You’ll need to write a bill (note in French) only in three cases:
A bill is similar to an invoice but with fewer legal mentions. All you need to specify is the date the bill is sent, the name and address of your company, the client’s name, the total sum to be paid, the date and address of where the service was carried out, as well as a breakdown of the service provided (listing both quantity and price). Of course, you can also choose to send a regular invoice instead.
Failure to invoice a client is punishable by a fine equal to 50% of the transaction amount, up to a maximum of €75,000 for a non-business individual and €375,000 for a corporate entity.
Keeping your invoices up-to-date is crucial whether you’re the head of a company, an individual entrepreneur, or a micro-entrepreneur.
As a micro-entrepreneur, you have the benefit of super-simplified accounting obligations. You are not required to have a full-blown accounting system with yearly financial statements, but you still need to keep a revenue ledger (livre de recettes).
A revenue ledger is an accounting document that brings together all your items of revenue (i.e. incoming payments) organized in chronological order. Each new revenue entry must be supported by an invoice.
That’s why two duplicate invoices must always be created: one for your client and one you to keep for accounting purposes.
The invoice’s date must appear clearly on it, ideally at the top of your invoice.
Each invoice has to have its own unique number, following a specific numbering sequence.
For instance: INV001/INV002/INV003.
Not sure what sequence to use? Keep reading, we’ll go over that in detail further down.
Your invoice must legally include the following information regarding your company:
You’ll find your SIREN and SIRET numbers on your Sirene directory registration notice.
Are you an individual entrepreneur? Since 15 May 2022, you also have to write “Entrepreneur individuel” (individual entrepreneur) or just “EI” before or after your first and last name.
This applies to all your business documents, from your invoices to your quotes and contracts. Your invoice must also include these mandatory elements related to your customer:
The invoice must also contain elements relating to the job you performed, namely:
As a freelancer, you can choose between two ways of invoicing: billing a fixed fee, i.e. per project, or billing per time spent. So, in addition to the other mandatory elements, your invoice should indicate if you’re billing by an hourly or daily rate, as well as the number of days you worked.
If you’re working on an ongoing project with a client, settle how frequently you invoice them upfront. It could be, for instance, on a monthly basis.
Legal elements linked to payment specify:
By default, the usual payment period is 30 days after you’ve completed the task.
The amount you can claim as a recovery fee is set at a flat rate by the law.
The late payment penalty corresponds to an interest rate added to the initial sum that was invoiced. This rate is fixed by the European Central Bank (ECB), which currently is 0,77%, plus an additional 10%.
To help protect yourself from late payments and claim penalties, you can, for example, put the following text (in French) in all your invoices:
« Règlement dès réception de la facture de solde (dans la limite de 30 jours). Tout retard de paiement donnera lieu, à titre de pénalité de retard, à l'application d'un intérêt égal à celui appliqué par la Banque Centrale Européenne à son opération de refinancement la plus récente, majoré de 10 points de pourcentage, ainsi qu'à une indemnité forfaitaire pour frais de recouvrement d'un montant de 40 €. Les pénalités de retard sont exigibles sans qu'un rappel soit nécessaire. »
This isn’t a legal requirement, but if you’re planning on getting paid via bank transfer, including your IBAN details at the bottom of your invoice is a good idea.
Are you subject to VAT? In that case, you’ll also need to include:
What should your invoice say if you’re VAT-exempt?
Not subject to VAT? Then, at the bottom of your invoice, you’ll want to mention: «TVA non applicable, art. 293 B du Code général des impôts ». (“VAT not applicable, article 293 B of the General Tax Code”)
Write your invoice carefully and make extra sure you mention all the legal elements required. If you fail to mention some, or do so incorrectly, you might have to pay:
We know: there’s a lot to keep track of, and mistakes happen. So, to help you make sure your invoices are compliant, our finance and legal teams created these free invoice templates (in French) for you, easily downloadable in an Excel format.
An invoice can be manually written, and some independent contractors still use a billing ledger. This way of doing things, however, is far from ideal.
It requires being extremely well organized: you need to either scan your invoices or mail them to your clients by postal mail (if you don’t hand them over in person).
Sorting and organizing your invoices is likely to also be tedious, especially if you issue a lot of them each month.
Another alternative is to use a spreadsheet tool like Excel or Google Sheets. This solution can work as long as you remember to include all mandatory legal elements and are okay with manually entering information. It’s better than handwriting invoices, but it’s not quite ideal, either.
To save time and streamline your admin management, billing software is a safe bet.
All you need to do is fill out the parts relating to the job you did and your client, and the software will handle the rest, from calculating the pre-tax amount (HT in French) and full amount (TTC in French) to the VAT owed and so on. You’re also sure your invoices contain all the compulsory legal elements.
With Qonto’s business account, you also get access to a built-in billing tool. You can create a new invoice in a few clicks, track its status and collect your clients’ payments. Each invoice has a sleek design, and you can add your company’s logo to it.
As we mentioned earlier in the article, giving a number to your invoice is a legal requirement. Having a logical numbering system is crucial to managing your invoices more easily.
Here are the rules to follow:
In other words, your invoices must follow each other. How you choose to number your invoices is up to you, as long as the numbering system you pick is logical. For instance, nothing forces you to start your invoice numbers with 1,2,3, and 4.
Adding a prefix to your invoice numbers is also a good call, especially to help you tell your quotes and invoices apart (since your quotes, too, must have unique identification numbers). For example, use INV for invoices and QUO for your quotes.
Here are a few possible numbering sequences:
When using billing software, your invoice numbers will be automatically generated and follow a logical sequence without breaks. Another area you don’t have to worry about.
All your invoices must be kept for ten years. Yes, ten years, during which, in case of an audit, you could be asked to show all your accounting documents for this period.
It’s therefore crucial you have a sound filing system. You can choose, for instance, to upload all your invoices in a shared cloud folder or use dedicated software.
Do you work for a public entity, such as a town hall, a public hospital, or a local library? In that case, you have to send them electronic invoices via the Chorus Pro platform.
All you need to do is create an account and import your document in PDF format. The Chorus Pro service will then turn your invoice into an electronic invoice.
Many freelancers agree to a job based solely on a client’s verbal agreement or tacit consent. Don’t make that mistake. Having a signed estimate to kickstart your job is best to avoid any unpleasant surprises.
That’s because a signed estimate is binding for both parties and is equivalent to a contract.
What does that mean?
Put in practical terms, should there be a dispute, particularly in the event of an unpaid bill, you’ll be able to use the quote as proof.
Without a quote, even if you issued an invoice, it’ll be hard for you to prove the client agreed to your mission at that price. And so it might prove tricky for you to take the necessary steps to get paid in full.
Yes, invoicing is mandatory if you’re rendering services for professional entities. You also have to create an invoice if you’re working with non-professional individuals for over €25 or if your client asks you for one.
Auto-entrepreneur? Download our invoice template: it’s in French, 100% compliant with French requirements, and includes all the mandatory elements your status calls for.
Two common ways of billing as a freelancer are project-based (fixed) pricing and time-based pricing. Make sure to include all the legal mentions required in your documents, whichever method you choose.
Setting your freelancer rate is no easy task, especially when you’re just starting out. Good criteria to consider when pricing your services are: how complex the work you’re being asked to do is, your level of expertise, and what other freelancers in your field usually charge. This article should help you pick a rate.
Even if your company isn’t registered yet, you must invoice any job you do. Instead of your SIRET or SIREN number, you’ll want to write “ société en cours d’immatriculation” (company currently being registered).
At Qonto, your business account comes with a built-in invoicing tool. That way, you can create a legally compliant invoice in just a few clicks.
