Belgium: Electronic invoicing (e-invoicing) by 2025

Belgium: Electronic invoicing (e-invoicing) by 2025

Electronic invoicing (e-invoicing) and certified solutions can increase efficiency and help address value added tax (VAT) evasion, but can also entail additional costs for businesses.

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It is anticipated that e-invoicing will be the norm in Belgium by 2025.

An invoice is, and will remain, an essential document within the economy. This applies for legal, accounting, and tax purposes. As a general rule, a VAT-taxable trader must issue an invoice for every non-VAT-exempt supply of a service or good to a customer that is not a private person (taking into account that some exceptions may exist).

While there can be no objections to combating VAT fraud or arguments against requiring a certain transparency in transactional data, a proliferation of national regulations leads to additional burdens on businesses. These include, for example, building the necessary interfaces with a regulated data transmission system; reconciling the accounts with the invoices generated by the government's invoicing system; and declining the right to deduct VAT if invoices are not issued in accordance with the regulated invoicing system.

Entrepreneurs will need to check in each country where they have a business as to whether there are specific regulations for the issuing and storage of invoices. This evolution, to a certain extent, goes against the trend of standardization and harmonization of invoicing within the EU and creates additional challenges for multinational companies with regard to the centralization and outsourcing of their invoicing, accounting, and reporting.

It is however to be expected that with the accelerated digitization of the society and business environments, e-invoicing will become more important, and more transparency in economic transactions will be required. By 2025, e-invoicing will therefore be expected to be the norm in Belgium.


Read an October 2020 report prepared by the KPMG member firm in Belgium

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