Mandatory E-Invoicing for Belgian Companies Starting January 1, 2026

Mandatory E-Invoicing for Belgian Companies Starting January 1, 2026

Introduction

Starting January 1, 2026, Belgian VAT-liable entrepreneurs, both companies and individuals, will be required to issue invoices for B2B transactions electronically, in compliance with the new e-invoicing regulations. This obligation does not yet apply to B2C transactions.

The shift to e-invoicing means that sending invoices in PDF format via email will no longer suffice. Instead, invoices must be transmitted in a structured format, such as XML or UBL, via the Peppol network. This network ensures a secure and efficient exchange of invoices within Europe. This change is part of a series of measures introduced by the European Commission to improve the VAT system and combat fraud by digitizing invoicing processes.

Key Advantages for Small Businesses and Sole Traders

For small businesses and sole traders, there are fiscal incentives to encourage the adoption of e-invoicing. Between January 1, 2024, and December 31, 2027, they can apply an increased cost deduction of 120% for certain expenses, such as subscription fees for invoicing software or consultancy costs associated with implementing e-invoicing.

For example, if your business subscribes to invoicing software for €500 per year, you can save up to €25 extra in taxes annually, in addition to the regular tax deductibility. This incentive aims to ease the financial burden of adopting the required tools for compliance with the new regulations.

What You Need to Comply

To ensure compliance with the upcoming e-invoicing requirements, your business will need three key elements:

  1. An ERP System or Invoicing Tool
    The software you use must be capable of creating invoices in the appropriate structured formats (XML, UBL). Popular solutions already adapted to these regulations include Billit or EenvoudigFactureren.be.
  2. Access to the Peppol Network
    The Peppol network ensures the secure and efficient exchange of e-invoices. Many invoicing tools provide built-in access to this network, but it is worth confirming this feature with your provider.
  3. Document Processing Tools
    Tools to manage and process the digital invoices you receive and send, ensuring smooth integration with your existing systems.

Recommended Action Points

  • Assess Your Current Setup

Evaluate your current invoicing methods this year to identify gaps in compliance with next year’s regulations. Determine whether your existing software supports XML/UBL formats and Peppol integration.

  • Choose Suitable Invoicing Software

Research and select an invoicing tool or ERP system that meets the requirements. Solutions like Billit or EenvoudigFactureren.be are already adapted to the upcoming regulations. Other tools might also integrate seamlessly with your current systems.

  • Apply for Tax Benefits

Keep track of your expenses related to the transition (e.g. software subscriptions, consultancy, and so on) and ensure you apply for the increased tax deduction (120%) when filing your tax return next year.

  • Start Early Implementation

Do not wait until the last minute. Begin implementing the necessary tools and processes in the coming months to ensure a smooth transition by 2026.

  • Consult an Expert

If you are unsure about the technical requirements or the best software for your business, seek advice from an IT or accounting expert who specializes in e-invoicing.

  • Train Your Team

Educate your team about the changes in invoicing processes to avoid errors and delays once the regulations come into effect.

Why Act Now?

Avoid penalties, streamline processes, and benefit from tax incentives by adopting e-invoicing early. As we are less than 12 months away from 2026, your business will be well-prepared for the e-invoicing requirements, ensuring compliance while benefiting from a potential tax advantage. The transition to e-invoicing is an opportunity to modernize your invoicing processes and improve your overall operational efficiency.

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