Belgium approves mandatory B2B e-invoicing

Belgium is the latest European country to approve legislation that will see B2B e-invoicingElectronic invoicing - widely referred to as e-invoicing - is the exchange of a digital document between a supplier and a buyer. E-invoices are issued, transmitted and received in a structured data format that enabled automatic and electronic processing. They contain data in a machine-readable format so that an AP system can read an invoice without manual data entry, leading to faster and more efficient invoicing. become mandatory from 1^st January 2026.

The Chamber of Deputies passed a bill on 1^st February that sets out details of the adoption of a system based on the structured electronic invoice in EU Directive 2014/55/EU.

Following approval by the chamber, the bill will now be passed to the king for sign-off, before it is gazetted and brought into law.

In October 2023, Belgium applied to the European Commission for permission to introduce mandatory B2B e-invoicing and is waiting for a final decision.

What will Belgium’s B2B e-invoicing system look like?

Once the new B2B e-invoicing laws come into effect in 2026, all businesses established in Belgium with a VAT registration will be required to issue and receive structured e-invoices.

The PEPPOLThe Pan-European Public Procurement On-Line simplifies electronic procurement by developing technology standards that can be implemented by all governments across the EU. four-corner system has been selected as the default transmission method, meaning there will be no direct government reporting initially.

Despite PEPPOL’s status as the default system, it will be possible for taxpayers to utilise other platforms providing they comply with EU requirements.

In time, it is likely that Belgium will work to implement a five-corner PEPPOL model, which would entail the introduction of e-reporting.

Why is Belgium mandating B2B e-invoicing?

Like many EU nations, Belgium records a significant VAT gapThe difference between the amount of VAT revenue due to a tax authority and the amount actually collected (the difference between the amount of VAT due to its tax authority and the amount collected).

Indeed, the EU’s VAT Gap Report 2023 revealed Belgium’s national VAT gap to be €2.53 billion in 2021; the sixth-largest deficit in the bloc.

By mandating e-invoicing – as well as other systems such as real-time reporting – tax authorities will have greater access than ever before to data via digital systems. This will enable them to automatically flag transactions or companies that may require further scrutiny.

Any business that is processing invalid or inaccurate data is at increased risk of being identified and could face penalties, including substantial fines.

That’s why we believe clean, complete and comprehensive master data holds the key to success for tax teams in the era of digitalisation.