What is a Partner Dematerialisation Platform (PDP)?

A Partner Dematerialisation Platform (PDP) is a service provider accredited by the State to ensure the transmission and management of invoicing data as part of the reform on electronic invoicing (e-invoicing).

E-invoicing will gradually become mandatory in France for all companies subject to VAT, both for incoming and outgoing invoices. PDPs will play a key role in implementing this reform, with large companies required to be ready by 1 July 2024.

The "Y" model: a mixed system for electronic invoicing

The "Y" model, which does not require businesses to use a public platform to send or receive invoices, has been favoured by the French government, unlike other European countries.

As of 1 July 2024, companies subject to VAT will be free to choose, for both sending and receiving, between:

A Partner Dematerialisation Platform (PDP) which must be approved by the Administration beforehand
The Public Invoicing Portal (PPF), accessible free of charge by all VAT-registered parties (both senders and receivers of invoices), which offers a minimum set of services to private companies for exchanging their electronic invoices. This base is not suitable for companies that manage several hundred or even thousands of invoices each year, both incoming and outgoing.

How PDPs work

PDPs will be managed by private service providers approved by the French government for a renewable period of three years. They will play a central role as intermediaries between businesses and the administration.

PDP responsibilities and features

PDPs will perform several critical functions:

Receiving and issuing electronic invoices and making them available to their recipients
Conversion of invoices issued by suppliers into a structured and compliant format (UBL 2.1, UN/CEFACT CII or Factur-X) suitable for their customers
Guarantee of invoice data integrity, authenticity, legibility and completeness at all stages (during exchanges, storage and archiving of invoices)
Checking the conformity of invoices, transaction data and information (identity of senders and receivers, amounts, legal mentions) before transmitting them
Extraction and transmission to the tax authorities of certain invoice data (e.g. identification of the supplier and the customer, amount exclusive of tax and VAT of the transaction, amount of VAT due, VAT rate applied, etc.)
E-reporting: transmission of transaction data not covered by mandatory electronic invoicing (B2C and cross-border invoices) to the Administration
Transmission of invoice status (submitted, rejected, received) and payment data for all transactions
Sending business directory update information to the Public Invoicing Portal (PPF)

Each PDP has its own characteristics and functionalities beyond these core responsibilities.

Who should equip themselves with a PDP?

All companies are subject to and required to submit VAT returns to government departments. It therefore goes without saying that equipping themselves with a PDP is a must for companies, regardless of their size.

However, this compliance presents concrete advantages for the day-to-day operations of financial teams.

For SMEs

Process simplification: Automation reduces manual tasks, freeing up time for higher value-added activities.
Improved cash flow: Efficient invoice management allows you to recover VAT more quickly and track payments in real-time.
Effortless compliance: PDPs ensure your invoices meet all legal obligations.

For mid-sized and large companies

Centralisation and integration: PDPs easily integrate with complex ERP systems, facilitating the management of large-scale billing flows.
Interoperability: Exchanges with international partners or entities using other PDPs are fluid and compliant.
Cost reduction: According to the DGFiP, the dematerialisation of invoices can reduce processing costs by around 30%, with savings reaching 50 to 75% compared to paper processes.

How to choose a PDP?

When selecting a Partner Dematerialisation Platform, consider these key benefits for your business:

Regulatory compliance: Simplification of tax obligations and securing of exchanges.
Process optimisation: Automation of the issuing, receiving and archiving of invoices.
Interoperability: Seamless management of exchanges with your partners, even if they use different platforms.
Traceability: Real-time monitoring of invoice statuses (issued, rejected, validated).

Key figures

According to the DGFiP, the dematerialisation of invoices would, in itself, represent a saving of around 50 to 75% compared to paper processing and would reduce the processing cost by around 30%.

Why are PDPs already key partners?

With the entry into force of the reform, Partner Dematerialisation Platforms (PDP) are becoming a pillar of tax compliance and the digital transformation of companies.

They are not simple technical intermediaries: they provide real added value by guaranteeing the fluidity of exchanges between companies, their commercial partners and the State.

Certified by the tax administration, PDPs play a central role in the management and transmission of invoicing data, ensuring both regulatory compliance and the optimisation of internal processes.

Role of the Public Invoicing Portal (PPF)

At the heart of the reform, the Public Invoicing Portal (PPF) will perform several tasks:

Manage the directory of all companies (private and public)
Connect with all Partner Dematerialisation Platforms (PDP)
Receive electronic invoices and B2B billing data for transmission to the tax authorities
Transmit data from transactions not covered by mandatory electronic invoicing (B2C and cross-border invoices) to the tax authorities (e-reporting)
Receive information on the status and payment of invoices

Preparing for the mandate

For large companies that are already equipped with an electronic invoicing or automated supplier invoice processing solution, they should check now that their supplier(s) has/have taken the necessary steps to be approved by the Administration as a PDP.

For those who are not equipped, they must prepare for this reform now to give themselves time to meet the deadline of 1 July 2024. As the deployment of an e-invoicing or AP Automation solution takes several months and involves many departments (accounting/finance, IT, sales, legal, etc.), it is recommended that large companies start now.

Ideally, it is preferable to choose a Partner Dematerialisation Platform that will be able to manage both flows (receiving and sending electronic invoices), as well as e-reporting, to reduce the risks inherent to the multiplication of suppliers.