Background
The obligation to issue structured electronic invoices will take effect in Belgium as of January 1, 2026. Electronic invoices must be issued in a structured format, enabling automatic and electronic processing without manual intervention (so-called "machine to machine" processing).
The obligation to issue a structured electronic invoice depends on three essential conditions. The first condition is the party required to issue the invoice: the taxpayer established in Belgium who is obligated to issue an invoice for the relevant transaction.
The second condition concerns the recipient of the invoice. The recipient must be obliged to provide their Belgian VAT number and accept the structured electronic invoice. There are exceptions, such as fully exempt VAT taxpayers (who have no right to deduct VAT) and transactions with non-VAT taxable persons, such as real estate work for individuals.
The third condition relates to the transaction itself. The obligation applies only to transactions taking place in Belgium, with exceptions for certain exempt transactions under Article 44 of the VAT Code and intra-community supplies. All three conditions must be met simultaneously for the obligation to issue a structured electronic invoice to apply. This means the obligation only applies when all three "vectors" converge.
Format and transmission network
Interoperability is crucial for the smooth and automatic exchange of structured e-invoices between companies. According to the law (Art. 53, § 2bis of the Belgan VAT code), invoices must meet the standards set by the King for semantics, syntax, and transmission. The Royal Decree confirms that Peppol BIS will be the standard format for structured electronic invoices. Other formats may only be used if explicitly agreed upon between the parties involved and if they comply with European standards (EN 16931).
The Royal Decree also stipulates that companies must be Peppol BIS-compliant by 2026, meaning businesses must be able to send and receive Peppol BIS invoices, regardless of agreements with partners on alternative formats. Peppol is expected to play an even more central role, especially considering its anticipated essential function for future e-reporting, which will become mandatory from 2028. This makes Peppol not only highly important now but also in the future, as the network is expected to evolve into a "5-corner model."
Rounding rules
The Royal Decree changes the rounding rules for VAT on invoices. For structured electronic invoices that meet European standards, rounding is only permitted on the total VAT amount, not per line (e.g., per product or service). Rounding per line is therefore no longer allowed for such invoices.
Penalties
The Royal Decree introduces new penalties for taxpayers who do not have the necessary technical means to issue and receive structured electronic invoices. This violation will be penalized with a fine that increases for repeated offenses:
• First offense: EUR 1,500
• Second offense: EUR 3,000
• Subsequent offenses: EUR 5,000
These penalty levels are inspired by the existing penalty policy for failing to have a registered cash register system . The Royal Decree specifies that a violation can only be considered a second or subsequent offense when the administration detects the new breach at least three months after the first administrative fine has been imposed. This means taxpayers will have a three-month grace period after the first offense to rectify their technical means before penalties for repeated offenses apply.
Finally, the existing penalties for failing to issue an invoice, or for issuing an incomplete or uncompliant invoice, remain unchanged and will also apply to structured electronic invoices.