While e-invoicing is becoming a widespread norm, Belgium is taking a particularly decisive step. With a business-to-business (B2B) e-invoicing mandate kicking off in 2026, the country is set for a rapid digital adoption, and software companies providing solutions to businesses need to be prepared.
If there's one word in Belgium's e-invoicing journey, it's Peppol. The country has decided to go all-in with the standardised Peppol network as the backbone for its e-invoicing system.
However, despite this clear direction, current Peppol registration and traffic numbers in Belgium aren't sky-high just yet. This suggests that while the decision has been made, many businesses are still in the "preparation mode." The coming months are definitely going to be interesting as the deadline draws closer.
Belgium isn't stopping at e-invoicing. They're also actively preparing for the broader "VAT in the Digital Age" (ViDA) framework, with e-reporting as the next big step. This means that after invoices are digitalised, real-time tax reporting will follow.
Belgium is once again opting for the Peppol way for e-reporting, specifically eyeing the "five-corner model" that leverages the existing Peppol network for tax reporting. While the exact details are still being ironed out, it's clear Belgium is committed to using Peppol for both e-invoicing and e-reporting, with the latter expected in 2028.
With a mandate looming, it's no surprise that the Belgian market is seeing a surge of new players, especially e-invoicing solution providers and Peppol Access Points. This creates a lot of opportunities as demand for e-invoicing solutions increases. With the initial focus on standard e-invoices, the barrier to entry for new providers might seem low.
However, this influx also presents potential challenges. Not all new providers may possess the maturity or capabilities to handle the expected high volume of traffic effectively. This could lead to a future where the market consolidates, favouring providers with robust, scalable solutions. Moreover, as more complex requirements like e-reporting come into play, only those providers with comprehensive capabilities will likely be able to keep up. It's easy to set up an access point now, but the real test will come when traffic truly surges in 2026.
Recognising the rapid timeline and the need for adoption, the Belgian government isn't just relying on mandates. They're also offering some "carrots" to incentivise businesses:
Increased investment deduction: Businesses making digital investments for e-invoicing can benefit from an increased investment deduction of 20%.
Cost reductions for SMBs: Small and medium-sized businesses (SMBs) and entrepreneurs using subscription-based invoicing solutions can enjoy significant cost reductions.
For software providers in Belgium, the main takeaway is clear: Peppol is paramount. Also, keep the upcoming e-reporting mandate for 2028 in mind for your long-term strategy - ideally, the very same Peppol Access Points that your solutions utilise for e-invoice traffic will also facilitate e-reporting.
It's also worth noting Belgium's unique approach with the Hermes register, which helps ensure everyone has a Peppol address. This proactive government effort highlights Belgium's strong commitment to driving e-invoicing adoption forward.