Accounting
Get ready for mandatory electronic invoicing in Belgium!
The transition to mandatory electronic invoicing is officially underway in Belgium, following the adoption of the law on February 6, 2024. This development stems from the European Commission's ViDA project, aimed at modernizing VAT in the European Union and combating tax fraud.
Here are the key points to remember to prepare for this transition:
- ViDA project context: Launched in December 2022, this project aims to modernize the European Union's VAT system, notably through electronic invoicing between businesses.
- Upcoming changes: Electronic invoicing becomes mandatory for VAT-registered entities established in Belgium.
- What can you do now? Ensure that your processes meet the new requirements by issuing structured electronic invoices.
- Definition of structured electronic invoicing: This involves the complete digital processing of an invoice, enabling automated processing and machine-to-machine transmission.
- Scope: All VAT-registered entities in Belgium are affected by this requirement, with some exceptions (notably those only engaged in exempt transactions based on Article 44 of the CTVA).
- Interoperability: A major challenge is the lack of interoperability between electronic invoicing systems. The PEPPOL-BIS format has been chosen as the main reference to address this issue.
- PEPPOL advantages: By using the PEPPOL network, you benefit from simplified connectivity and facilitated transmission of electronic invoices.
- Flexibility: You have the option to use other technologies while adhering to European standards regarding semantics and syntax.
- Effective date: The new rules will come into effect on January 1, 2026. It is crucial to begin planning the implementation of new software systems now.
- Tax benefits: Tax incentives are provided to help offset the additional costs associated with electronic invoicing.
In summary, these changes offer opportunities for simplification and efficiency but require adequate preparation.
We are at your disposal to provide you with further information and resources regarding this crucial development: In Extenso Belux.