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

The European Union wants to close the "VAT gap," partly through the introduction of digital invoicing. The VAT gap is the difference between the VAT revenue a government expects to receive based on economic activity and the amount actually collected. Belgium is taking a leading role in this and aims to be among the first to implement this directive.

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

The new e-invoicing legislation of the Belgian government

What exactly does the obligation entail from 1 January 2026?

Starting New Year's Day 2026, all invoices between Belgian companies must be exchanged in a structured XML format via the Peppol network. Traditionally sending PDF invoices by email will no longer meet legal requirements. This applies bidirectionally: companies must be able to both send and receive electronic invoices.

Invoices must be formatted according to international standards and contain structured data that can be processed automatically. This completely eliminates intermediate steps such as email from the process.

Who is covered by the law? B2B, B2G, and the role of the Belgian government

The legislation applies to all B2B transactions between Belgian businesses subject to VAT, regardless of their size. Invoices to government bodies (B2G) have been required to be sent via Peppol for several years now. All Belgian government levels apply the same e-invoicing requirements via the Peppol network.

The obligation does not (yet) apply to transactions abroad, although Europe is aiming for harmonisation by 2030.

Medical professions, under Article 44, are currently exempt. So, as a doctor or dentist, you don't have to do anything for now, but you are certainly welcome to do so.

Exceptions and important deadlines

There is no official transition period. The legislation will take full effect on January 1, 2026, and fines can be imposed immediately. Exceptions apply to B2C transactions (receipts and receipts remain permitted), invoices from foreign suppliers, and possibly certain small amounts below a threshold yet to be determined.

Impact of mandatory e-invoicing on your company

Consequences for your administration and invoice processes

The transition to e-invoicing requires a thorough overhaul of your current invoice process. Instead of PDFs via email, you'll now work with XML files via Peppol. This means your current invoicing software will need to be upgraded or replaced with software that supports e-invoicing.

In addition, employees must be trained in the new processes, and internal procedures such as approval procedures and archiving systems must be adapted to the digital approach. It's also best to communicate with your business contacts about the transition yourself to ensure they are ready as well.

Risks and sanctions for non-compliance

The Belgian government has imposed substantial fines: €1,500 for the first violation, €3,000 for the second violation, and €5,000 for third and subsequent violations. Furthermore, invoices not sent via Peppol can be legally contested.

Financial and operational benefits

But it's not all doom and gloom. For most businesses, the benefits of e-invoicing far outweigh the costs and drawbacks.

E-invoices are paid an average of 2-3 days faster because they're entered directly into the recipient's system. This saves postage costs, time, and reduces errors. The improved cash flow and automated accounting outweigh this cost.

In addition, e-invoicing software is temporarily 120% deductible for small businesses and self-employed persons.

Technical requirements: Peppol as the standard

Why structured e-invoices are mandatory

Peppol was established to reduce the VAT gap by standardizing, automating, and enhancing the security of electronic invoicing, drastically reducing errors, fraud, and administrative omissions in VAT returns. The VAT gap is the difference between the VAT revenue a government expects to receive based on economic activity and the amount actually collected. This gap arises from factors such as fraud, bankruptcies, and administrative errors in VAT returns. Peppol aims to reduce this margin of error.

The role of the Peppol network for the European Union

There are several 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 is expanding 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 choosing 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, performing advanced OCR for analog invoices, and fully automating your workflow. This results in time savings of 5-10x, depending on the volume processed.

How do you prepare for e-invoicing from 2026?

Step-by-step plan for a smooth transition

Start analyzing your current invoice volumes and processes now. Identify the software you use and who's involved in invoicing. Then compare different e-invoicing solutions and test their integration with your current systems.

Plan the implementation for the second half of 2025, allowing sufficient time for testing and validation. Register with Peppol through a recognized Access Point Provider and test the full workflow with a few customers and suppliers before switching over completely in January 2026.

Analysis of 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 the invoicing and accounting software you use and whether there are any integrations with 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. Set up data mapping between systems and test the integration in a test environment. Be sure to involve your accountant in this new approach.

Also inventory which master data needs to be transferred and check the quality of customer and supplier data.

Frequently Asked Questions (FAQ)

Who is required to use e-invoicing from 2026?

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

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

Is a PDF invoice still valid after the introduction of the law?

As of January 1, 2026, PDF invoices will no longer be permitted for B2B transactions between Belgian companies. Exceptions apply to invoices to private individuals and invoices from foreign suppliers.

If you still receive a lot of PDFs alongside your Peppol invoices, Cashfeed's conversion service might be right for you. PDF invoices are automatically converted to the required XML format.

What technical requirements do I need to get started 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 useful for a fully automated process. Cashfeed can help you with both.

What is the situation in the Netherlands?

The Netherlands doesn't yet have a specific deadline for mandatory exchange of data via Peppol. E-invoicing to the Dutch government is already mandatory, and many companies already voluntarily use e-invoicing via the Peppol network.