Belgium has taken an important step toward digitization with the recent parliamentary approval of mandatory electronic invoicing at the national level. This historic decision revises the Belgian Value Added Tax Code and the Income Tax Code of 1992 and marks the beginning of a new era of mandatory e-invoicing.
Extension to the private sector
Previously, electronic invoicing was only mandatory within the public sector. However, with the passage of this law, private companies are also required to switch to e-invoicing from Jan. 1, 2026. This transition period gives companies enough time to prepare and comply with the new regulations.
Obligation without burden
The introduction of mandatory electronic invoicing in Belgium is in line with global trends of digital transformation in financial processes. By embracing e-invoicing, companies can make their processes more efficient, cut costs and reduce their administrative burden. Moreover, electronic invoicing offers numerous advantages over traditional paper invoices, such as faster processing times, improved accuracy and increased security.
The Framework
To facilitate the implementation of e-invoicing in the private sector, Belgium continues to use the Peppol framework, already successfully applied in the public sector. This standardized system ensures interoperability and smooth communication between companies and public authorities.
The choice of the Peppol framework underscores Belgium's commitment to align its new obligations and requirements with international standards. This strategic decision makes the transition easier for companies and strengthens Belgium's interoperability with other countries that already use the Peppol framework.
Modernization of financial processes
In addition, the move to mandatory electronic invoicing reflects a broader effort by Belgium to modernize its tax and financial systems. By digitizing invoicing processes, Belgium aims to improve transparency, combat tax evasion and increase the overall efficiency of the economy. The parliamentary approval of mandatory e-invoicing marks an important milestone in Belgium's digital transformation.
By embracing e-invoicing and leveraging the Peppol framework, Belgium is poised to modernize financial processes, improve compliance and drive economic growth. As companies prepare for this transition, it is important that they seize this opportunity to adapt to the new digital era and leverage the benefits of electronic invoicing for long-term success.
