Understanding Belgium's E-Invoicing Mandate: Latest Changes and Key Insights for Finance Professionals

Belgium is poised to transform its tax reporting system with the introduction of mandatory e-invoicing, set to take effect on January 1, 2026. This significant reform aims to combat VAT fraud while simplifying compliance and administrative processes for businesses. However, the newly formed federal government has even more ambitious plans.

In this blog post, we’ll break down the latest developments, provide key insights for finance professionals, and explore the background and technological framework of Belgium’s evolving e-invoicing mandate.

Belgium's VAT e-reporting plans

A few days ago, a new Belgian coalition government was formed, reaffirming its commitment to tax policy reforms that promote entrepreneurship and enhance competitiveness—initiatives that began under the previous legislature. As part of this agreement, the mandatory e-invoicing obligation will be expanded, and a near real-time VAT reporting system will be introduced, set to launch in 2028. This new initiative is designed to combat VAT fraud even more and will complement the mandatory e-invoicing regulation taking effect on January 1, 2026.

Under the new e-reporting framework, cash registers, payment systems, and invoicing platforms will be directly integrated with the tax administration, enabling the automatic transmission of VAT data. By leveraging advanced data analytics, this approach is expected to significantly reduce VAT fraud and enhance the efficiency of VAT audits. Additionally, to streamline administrative processes for businesses, the annual client listing requirement will be abolished.

While the government has set 2028 as the target for implementing the new e-reporting system, details regarding the framework, timeline, and technological infrastructure for data exchange are yet to be clarified.

Background on e-invoicing in Belgium

Belgium has been steadily advancing its efforts to combat tax evasion, and the upcoming e-invoicing obligations, set to begin in January 2026, play a critical role in this strategy. The Belgian Ministry of Finance has provided a dedicated page to clarify which taxpayers must comply and to outline the technological requirements for transmitting and receiving invoices. The mandate was developed in collaboration with an advisory group known as the Business Expert Group (BEG).

Technological framework and incentives

The Peppol Framework has been designated as the preferred technology for issuing and receiving invoices. Businesses looking to comply with Peppol must acquire a certified service provider. Recognizing the costs associated with adapting to these new requirements, the Belgian government has introduced the following tax incentives:

• From January 1, 2025: A 20% increase in the investment deduction for digital investments.
• For taxable periods from 2024 to 2027, SMEs and entrepreneurs using subscription-based invoicing solutions can apply 120% cost deductions for related technology and software packages.

To further support businesses, the Belgian government has published an FAQ page on e-invoicing.

Key insights for finance professionals

Belgium's e-invoicing mandate represents a significant shift in how businesses handle financial transactions. This move aligns with the broader European trend toward digitalization and financial process modernization. However, compared to e-invoicing mandates in other countries, Belgium's approach has several unique aspects:

• Big Bang Approach: Unlike countries that have implemented e-invoicing mandates gradually, Belgium is taking a big bang approach. As of January 1, 2026, all invoices exchanged between Belgian VAT-registered entities must be structured electronic invoices. Paper and PDF invoices will no longer be accepted.
• Preparation Measures: The Belgian federal government has outlined several measures to ensure businesses are ready for the transition.
• Scope of the Mandate: Starting January 1, 2026, structured electronic invoicing will become mandatory for nearly all B2B transactions between Belgian VAT-registered businesses, including foreign companies operating in Belgium. However, it does not apply to B2C transactions involving goods or services for personal use.
• Alignment with EU Initiatives: Belgium’s e-invoicing legislation aligns with the EU’s “VAT in the Digital Age” (ViDA) initiative, which aims to simplify administrative processes and close the VAT gap to increase tax revenues.
• True E-Invoice Definition: An e-invoice is not a PDF sent via email. Instead, it is a structured file (XML format) that allows seamless automated processing by accounting software with minimal manual input.
• ViDA Package Impact: The ViDA package, effective November 2024, eliminates the need for EU approval to enforce e-invoicing on domestic transactions. This allows Belgium to implement its e-invoicing mandate by 2026, but by January 1, 2035, Belgium must fully adopt the EU's revised e-invoicing framework.

Prepare for the future of e-invoicing

Belgium's e-invoicing mandate is a crucial step toward tax modernization and financial transparency. Businesses that proactively adapt will be well-positioned for compliance and efficiency gains.

Want to learn more about how e-invoicing can drive operational excellence and compliance? Download the CFO’s Handbook: Leveraging E-Invoicing for Operational Excellence and Compliance to get expert insights and best practices.