French VAT Fraud Prevention Acts: How to Certify invoices with WooCommerce

If you are based in France, and have an online WooCommerce store, you may need all invoices and credit notes certified.

You are probably asking yourself these questions:

  • Why is it necessary to certificate invoices and credit notes?
  • These rules do they apply to me?
  • What can I do to ensure that I am in good standing?

We have the answers.

What is the purpose of having my invoices certified

French VAT Fraud Prevention Law – Article 88 of Finance Act ndeg2015-1785 – requires that certain merchants use a “secure cash register system” or software.

This law was created to stop people hiding their income and reduce VAT fraud which amounts to 17 billion Euros per year.

What is a “cash register software or system”? Here is the government definition:

A cash register software system is a computer program that stores and records payments in exchange for goods or services.

Simply put, it’s any software system that issues sales transaction documents such as invoices or credit notes or sales receipts.

These four rules are required for any payment register software or system to be certified and compliant.

  1. Inalterability : Payment operations data are recorded and stored but cannot be altered.
  2. Security Data is encrypted and returned to France’s Administrative Fiscale. Guaranteed to be in its original condition.
  3. Retention/Conservation: Data must be kept for six years with annual, monthly, and daily closures.
  4. Archiving Data is stored and classified by date and made easily readable by Administration personnel as part of a control.

Software certified by Infocert ( /NF525 certificate), LNE, Laboratoire national de metrologies et d’essais (a government agency) or self-certified systems can be used.

Sanctions and compliance control

certification is required to verify compliance with your cash register system. Your systems can be checked by the Administration Fiscale at any time, and without notice.

You’ll be penalized EUR7,500 for each software/system that you fail to provide a certificate or attestation. You have 60 days to comply. If you don’t, you will be penalized EUR7,500. You will be fined EUR7,500 and you will have to comply again within 60 days. This can make certification difficult.

Who is responsible for following the VAT Fraud Prevention Law

Let’s begin at the beginning. You need to understand how this law affects you.

If:

  • All prices are subject to VAT
  • You can sell products or services to customers that are not subject VAT, such private individuals.
  • A cash register system is used or software.
  • Register payment transactions
  • You can accept other payment methods than credit cards or transfer payments via a bank or credit institution.

This excludes self-entrepreneurs and professional as well as B2B businesses that only sell to professionals. You are affected if you have customers that are VAT-exempt and customers that aren’t.

To double-check that you are complying with the VAT fraud prevention laws you have the option to use an online test by the French government.

WooCommerce allows me to comply with the law.

This anti-fraud law is applicable to brick-and mortar stores as well as eCommerce websites. You will need to certify credit notes from orders placed on your WooCommerce website if you meet the conditions.

An extension for WooCommerce , which provides an external certification solution, simplifies things.

Kiwiz uses blockchain technology to authenticate invoicing documents. It is 100% compliant with the VAT antifraud law because it combines security, inalterability, and archiving.

Learn more:

Kiwiz is not a cash register software. It’s a certification brick that enables the payment software (in this instance, WooCommerce), to be secure and in compliance. It creates invoices from your eCommerce store.

How do you get started?

You will need to subscribe to one their plans to get started with Kiwiz certification Here’s how it works:

  1. Go to Kiwiz.io/prix to choose the plan that corresponds to your monthly transactions.
  2. Download the Kiwiz extension directly from WooCommerce.com Marketplace.
  3. After signing up for a Kiwiz plan, you will receive an email with the credentials to configure the extension.
  4. Start creating your invoices.

Kiwiz’s subscription plans are based on the number of transactions you make each month. Certification never ends. You will be charged more if you process more transactions than your monthly allowance. You will automatically be charged for a lower volume plan if you process fewer transactions than the monthly limit.

You have 30 days to test the service for free, and you can cancel anytime during that period.