Mandatory e-invoicing from 2026: what, how & why?

What is e-invoicing?

Electronic invoicing, also known as e-invoicing, is the process of sending, receiving, processing and storing invoices electronically instead of using paper-based methods.

Unlike traditional paper invoicing, which involves printing and mailing invoices, e-invoices are created, sent and processed digitally through electronic systems and networks.

Sending a PDF invoice by email does not qualify as e-invoicing. This format lacks the automation of true e-invoicing, as employees still need to manually create, review, send and enter PDF invoices.

The key feature of e-invoicing is that invoices are stored in a digital format, typically an XML file in a structured UBL (Universal Business Language) format. This format enables faster recognition, processing and integration by computer systems, accounting software and other business applications, enabling the seamless and efficient exchange of invoice information between trading partners.

Who is affected by this obligation?

From 2026, e-invoicing will be mandatory for B2B transactions in Belgium. Companies will have to send electronic invoices to other companies via the secure PEPPOL network. In order to make this happen, every company must be registered on PEPPOL. Once registered, companies can securely send and receive e-invoices via the network.

The new rules apply to:

• All Belgian VAT-registered companies operating in a B2B context;

• Members of VAT groups and Belgian permanent establishments;

• VAT-liable suppliers and customers, unless specific exemptions apply.

Exemptions include:

• VAT-registered businesses that only carry out exempt transactions;

• Suppliers under a flat-rate scheme or who have been declared bankrupt.

  The obligation applies to all supplies of goods and services subject to VAT in Belgium.

What are the benefits of e-invoicing?

E-invoicing offers many benefits:

• Faster payments: Digital processes reduce processing times, which has a positive impact on cash flow.

• Fewer errors: Automated processing reduces the risk of errors associated with manual data entry.

• Increased security: PEPPOL transmits invoices directly to the receiver's software. The secure PEPPOL network protects against invoice loss in transit and invoice fraud.

• Efficiency and cost savings: Save time and money by automating processes and reducing administrative overhead.

Are there any tax incentives?

The government recognises that there are costs associated with moving to electronic invoicing. To mitigate this burden, two tax incentives have been introduced:

• Increased cost deduction of 120% for e-invoicing:

  • Available to the self-employed and small businesses

  • Covers direct costs such as software subscriptions or consultancy fees

  • Applicable from tax year 2025 to tax year 2028

• Increased investment allowance of 20% for digital assets:

  • Permanent from 1 January 2025

  • Covers digital investments related to invoicing, customer management, e-commerce and cybersecurity

Click here for more information about these tax incentives.