eInvoicing in Belgium: Exploring the Impact of Directive 2014/55/EU and Looking at the Future of eInvoicing
On 20 June 2023, the European Commission engaged in an eInvoicing webinar with Belgian public and private sector representatives to discuss EU initiatives and national developments in eInvoicing. This provided an opportunity for Belgian stakeholders to gain a deeper understanding of EU initiatives and for the European Commission to gather valuable feedback. The primary outcome was the complete alignment between the European and Belgian approaches to eInvoicing.
Impact of Directive 2014/55/EU on B2G transactions
Following the publication of Directive 2014/55/EU, public authorities in Europe are mandated to process electronic invoices that adhere to the European Standard. Belgium transposed this Directive to national law on April 7, 2019. In accordance with Directive 2014/55/EU, public authorities are required to process electronic invoices that comply with the European Standard. Belgium implemented this Directive into national law on April 7, 2019. To expedite the adoption of eInvoicing in public procurement, a Royal Decree was issued on March 9, 2022, mandating that all economic operators submit electronic invoices in compliance with the European standard for eInvoicing in public procurement. This requirement is being implemented through the renewal of tenders. The Belgian public sector has also established a support program to assist economic operators in adapting to this change and to mitigate any negative impacts.
Progress in B2B eInvoicing
In his policy notes of 2022 and 2023, the Belgium Minister of Finance, Vincent Van Peteghem, announced the government’s proposal for a gradual introduction of mandatory B2B eInvoicing. The proposal is subject to approval by parliament. As such, no implementation timeline can be communicated, as this will depend on the timing of the parliamentary process. The Peppol framework - for secure cross-border exchange of electronic business documents - will serve as a common denominator to address the interoperability challenges in eInvoicing.
In its initial phase, the Belgian strategy would focus on regulating and standardising invoicing processes. This will involve establishing clear guidelines and requirements for businesses when issuing and receiving invoices electronically. In the subsequent phase, a new use for electronic invoices would be introduced by using eInvoicing for digital VAT reporting, ensuring greater accuracy and efficiency, and allowing for better monitoring and analysis of economic activities. Public authorities will gain valuable insights into business transactions, enabling them to make more informed decisions and policies. This is in line with what is foreseen in the European Commission’s VAT in the Digital Age (ViDA) legislative proposal, setting eInvoicing to become the default system for invoicing as of January 2028. Recognising that harmonisation is crucial, ViDA requires all Member States to accept the use of the EU eInvoicing standard for eInvoicing in all national eInvoicing systems.
Looking at the future of eInvoicing
The implementation of Directive 2014/55/EU has been instrumental in shaping eInvoicing practices in Belgium, not only in the B2G sector. As Belgium continues to promote eInvoicing, it is crucial for businesses to remain informed of evolving standards and to leverage technological advancements that facilitate its adoption. eInvoicing not only enhances operational efficiency but also supports sustainable business practices by reducing paper usage and promoting environmental sustainability. It also plays a vital role in optimising the financing of the economy. Further updates on ongoing political discussions regarding the Belgian proposal are expected in the coming months. As Belgium progresses in eInvoicing, it is well-positioned to further improve its digital infrastructure and drive national economic growth.