France: Compulsory electronic submission of accounting entry journal as from 1 Jan 2014

As from 1 January 2014, companies doing business in France, will be faced with a new obligation, the compulsory electronic submission of the accounting entry journal, so called “FEC” (“Fichier des écritures comptables”).

This obligation is applicable in case of tax audits as from 1st Jan 2014 with a back-dated effect to Fiscal Years 2011/2012/2013.

The e-file must include all the lines of accounting entries: no centralised/no aggregated entries.

Each line of accounting entries must include the accounting information corresponding to 18 specific required fields (e.g. the journal entry code, the accounting date, the entry number, the account number, debit amount, credit amount,…).

The e-file and the accounting entries must comply with the French GAAPs (PCG99) – International GAAPs are not authorised.

Failure to comply with this new obligation triggers significant tax penalties and notably an automatic penalty of 0,5% of the turnover of the company.

About Sophie Claessens

Senior Tax Manager PricewaterhouseCoopers Tax Consultants Belgium email: sophie.claessens@be.pwc.com Mobile: +32 473 91 05 67 Office: +32 3 259 3169

Sophie Claessens is an international VAT advisor, based in Antwerp, Belgium, with a particular focus on business-to-consumer industries, including telecommunications, media, internet and e-commerce. She supports major industry players on sector-specific issues, including VAT compliance at both an operations and strategic level, and is directly involved in policy work for businesses in these industries, both at the Belgian level and at the level of the European Commission. She is responsible for indirect taxes in the communications sector at PwC Belgium and is a driver of PwC’s Business Working Group on the EU 2015 VAT changes. She has authored articles for publication in Belgian and international tax journals.