E-invoicing: mandatory in Belgium from 2026! 🇧🇪

The European Union wants to close the VAT gap, among other things, by introducing digital invoicing. The VAT gap is the difference between the VAT revenues that a government expects to receive based on economic activity and the amount that actually comes in. Belgium takes a pioneering role in this and wants to implement this directive as one of the first countries.

From January 1, 2026, electronic invoices (e-invoicing) will be mandatory for all B2B transactions between Belgian companies. This significant change will have major implications for how companies send, receive, and process their invoices.

The new e-invoicing legislation from the Belgian government

What does the obligation from January 1, 2026 entail?

From New Year's Day 2026, all invoices between Belgian companies must be exchanged in a structured XML format via the Peppol network. The traditional sending of PDF invoices via email will no longer meet legal requirements. This applies bi-directionally: companies must be able to send as well as receive electronic invoices.

Invoices must be prepared according to the international standard and contain structured data that can be processed automatically. This eliminates intermediate steps like email from the process.

Who is subject to the law? B2B, B2G, and the role of the Belgian government

The legislation applies to all B2B transactions between Belgian companies that are VAT liable, regardless of the size of the company. Invoices to governments (B2G) have had to be sent via Peppol for several years already. All levels of the Belgian government apply the same e-invoicing requirements via the Peppol network.

The obligation does not yet apply to transactions abroad, although Europe aims for harmonization by 2030.

Medical professions, under Article 44, are currently exempt. As a doctor or dentist, you don’t have to do anything for now, but you can, of course.

Exceptions and important deadlines

No official transition period is provided. The legislation will come fully into effect on January 1, 2026, and fines can be imposed immediately. Exceptions apply for B2C transactions (cash tickets and receipts remain allowed), invoices from foreign suppliers, and possibly certain small amounts under a threshold yet to be determined.

Impact of mandatory e-invoicing on your business

Consequences for your administration and invoice processes

The transition to e-invoicing requires a thorough review of your current invoicing process. Instead of sending PDFs via email, you will work with XML files via Peppol. This means that your current invoicing software must be upgraded or replaced with software that supports e-invoicing.

Additionally, employees need to be trained in the new processes, and internal procedures such as approval processes and archiving systems should be adapted to the digital working method. It is also advisable to communicate with your business contacts about the transition to ensure that they are ready as well.

Risks and sanctions for non-compliance

The Belgian government has set substantial fines: €1,500 for the first occurrence, €3,000 for the second occurrence, and €5,000 for third and subsequent occurrences. Moreover, invoices that are not sent via Peppol can be legally contested.

Financial and operational benefits

However, not everything is doom and gloom. For most businesses, the benefits of e-invoicing far outweigh the costs and drawbacks.

E-invoices are typically paid 2-3 days faster because they go directly into the recipient's system. This saves on postal costs, time, and reduces errors. Improved cash flow and automated accounting offset that cost.

Moreover, e-invoicing software is temporarily 120% deductible for small businesses and self-employed individuals.

Technical requirements: Peppol as the standard

Why structured e-invoices are mandatory

Peppol was established to reduce the VAT gap by standardizing, automating, and securing electronic invoicing, drastically reducing errors, fraud, and administrative omissions in VAT declarations. The VAT gap is the difference between the VAT revenues that a government expects to receive based on economic activity and the amount that actually comes in. This gap is caused by, among other things, fraud, bankruptcies, and administrative errors in VAT declarations. Thus, Peppol aims to minimize that margin of error.

The role of the Peppol network for the European Union

There are various standards, but Peppol (Pan-European Public Procurement OnLine) is the prevailing standard in the EU. It uses advanced encryption and authentication, connects all EU member states, and expands to other countries. All participants receive a unique Peppol ID, ensuring invoices always reach the correct recipient.

The network is operational 24/7 and can process millions of invoices per day without performance loss.

Choosing and integrating the right software

When selecting e-invoicing software, Peppol certification, integration with your current accounting software, and OCR functionality for incoming PDF invoices are essential.

Cashfeed distinguishes itself by converting all invoice formats from XML, advanced OCR for analog invoices, and full automation of your workflow. We see time savings of 5-10x, depending on the processed volume.

How to prepare for e-invoicing from 2026?

Step-by-step guide for a smooth transition

Start now by analyzing your current invoice volumes and processes. Take stock of the software you are using and who is involved in invoicing. Then compare different e-invoicing solutions and test the integration with your current systems.

Plan the implementation for the second half of 2025 so you have enough time for testing and validation. Register with Peppol via a certified Access Point Provider and test the full workflow with some customers and suppliers before fully switching over in January 2026.

Analyzing your current processes

Map out how many invoices you send and receive per month, what the average processing time is, and where errors or delays occur. Also, take stock of which invoicing and accounting software you are using and whether there are links to other systems.

This analysis will help you choose the right e-invoicing solution and prepare your organization for the transition.

Preparing your accounting and ERP system

Check whether your current ERP system supports e-invoicing and plan any upgrades. Establish data mapping between systems and test the integration in a test environment. Make sure to involve your accountant in this new way of working.

Also, take stock of which master data needs to be migrated and check the quality of customer and supplier data.

Frequently asked questions (FAQ)

For whom is e-invoicing mandatory from 2026?

E-invoicing will be mandatory for all Belgian companies that are VAT liable, including sole proprietorships and freelancers who send invoices to other businesses. Associations and branches of foreign companies registered in Belgium are also subject to this obligation. Only medical professions are currently exempt.

E-invoicing is not mandatory for invoices to individuals, invoices from foreign suppliers, and certain small transactions under a threshold yet to be determined.

Is a PDF invoice still valid after the legislation takes effect?

For B2B transactions between Belgian companies, PDF invoices will not be allowed from January 1, 2026. Exceptions apply for invoices to individuals and invoices from foreign suppliers.

If you still receive many PDFs in addition to your Peppol invoices, then Cashfeed's conversion service may be something for you. PDF invoices are automatically converted to the required XML format.

What do I need technically to start with e-invoicing?

An internet connection and a tool that connects you to the Peppol network. Integration with your current accounting system is optional but recommended.

Additionally, OCR functionality and workflow management are helpful for a fully automated process. Cashfeed can assist you with both.

What about the Netherlands?

The Netherlands currently has no concrete deadline for mandatory exchange via Peppol. E-invoicing to the Dutch government is already mandatory, and many companies are already voluntarily using e-invoicing via the Peppol network.