Belgium's new proposal for mandatory electronic invoicing from 1 January 2026

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EY Global
6 Oct 2023
Subject Tax Alert
Categories Indirect Tax
Jurisdictions Belgium

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  • During a recent Council of Ministers meeting, a preliminary draft law was approved on the introduction of mandatory electronic invoicing for business-to-business transactions.
  • The previously proposed phased approach to adopting e-invoicing has been removed. The new proposed date for all taxpayers is 1 January 2026.

The Council of Ministers has approved a preliminary draft law introducing mandatory electronic invoicing for business-to-business (B2B) transactions in Belgium.

What's changing?

The new proposal is characterised by two important changes:

  1. There would no longer be a phased entry into force from 1 July 2024; instead, a general entry into force would occur beginning 1 January 2026.
  2. Mandatory electronic reporting would not be introduced together with electronic invoicing, but it is expected that this will take place at a later stage.

The preliminary draft still needs to be submitted to the Council of State for advice and also must be approved by the Belgian Parliament. In addition, Belgium must request that the European Commission provide a derogation from the European VAT Directive. This preliminary draft forms the basis for the application for derogation to the European Commission.

What are the key points?
  • The structured electronic invoice would become mandatory. Peppol-BIS is introduced as the standard format for electronic invoicing, although another format (within the European EN 16931 standard) could be used upon mutual agreement. A PDF format would no longer be sufficient.
  • All taxpayers established in Belgium (subject to some specific exclusions) would be obliged to issue e-invoices for local B2B transactions in Belgium.
  • The scheme would not apply to business-to-government (B2G) or business-to-consumer (B2C) transactions. A separate EU framework for electronic invoicing already exists for B2G.
How can you prepare?

Although the entry into force is anticipated for 1 January 2026, it is advisable to prepare and reflect on the business strategy to address this global trend toward electronic invoicing in an integrated and structured manner.

How EY can help

At EY, we have extensive experience in assessing and rolling out international e-invoicing projects. We recognize the complexity of such projects and that it can be challenging to comply with existing laws and regulations. We have a team of dedicated professionals who can help businesses meet the requirements and implement new systems.

 

For additional information with respect to this Alert, please contact the following:

Ernst & Young Tax Consultants (Ghent, Belgium)
  • Matthias Penninck

Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor

For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.