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.