Thanks to electronic invoicing, the entire invoicing process is fully automated from start to finish. This results in several significant advantages, such as fewer repetitive tasks,
increased efficiency, and for some, a reduction in administrative costs.
Since March 1, 2024, e-invoicing has been mandatory for all public contracts exceeding 3,000 euros. Starting January 1, 2026, this obligation will also apply to all businesses and entrepreneurs in Belgium. This new invoicing requirement has raised many questions among companies and entrepreneurs. As experts in digital invoicing, we are ready to provide clear answers.
First, let’s clarify what e-invoicing does not entail. It does not refer to ‘digital invoices’ in PDF, Excel, Word, or XML formats that are sent as email attachments or retrieved from a portal. An e-invoice is specifically an invoice in a defined XML format that complies with the European standard (OPEN/PEPPOL BIS format) and is delivered through the Peppol
network.
When does e-invoicing become mandatory for B2B?
As of January 1, 2026, all businesses and entrepreneurs will be required to send all their invoices and credit notes in the correct format and via the appropriate channels.
The legislation applies in both directions: you are also obligated to receive e-invoices and cannot refuse them. From the same date, suppliers will no longer need to obtain permission to invoice via e-invoicing.
Who is required to use e-invoicing in Belgium?
All companies and organizations registered in Belgium with a VAT number are subject to the e-invoicing obligation. This also includes sole proprietorships with limited turnover.
Even if your company is based abroad but registered for VAT in Belgium, you must comply with the new legislation.
Those not required to use electronic invoicing include foreign companies without VAT registration in Belgium and private individuals who are not subject to VAT.
Electronic invoicing will be legally mandatory, meaning that failing to comply with this obligation carries financial risks. If, as a supplier, you were required to issue an e-invoice but failed to do so, you risk a fine of up to €5,000 per invoice. Additionally, the recipient may lose their right to reclaim VAT on the relevant invoice.
The transition to e-invoicing involves certain investments for entrepreneurs and businesses. To support this, the Belgian government offers some attractive tax incentives. For instance, you can benefit from a 120% investment deduction, which applies to subscriptions, setup, and advisory services for both sending and receiving e-invoices.
This measure is valid for the taxable period from 2024 to 2027. Companies planning the transition in multiple phases over several years are advised to approach this strategically, aligning with the obligation and the deduction period.