Belgian businesses are facing a major shake-up as traditional paper and PDF invoices are scrapped in favour of a new international network system called Peppol.
As of 1 January 2026, all invoices between Belgian VAT-liable entities (i.e. B2B invoices) must be issued and sent electronically in a way that allows automatic and electronic processing.
This is confirmed by the Royal Decree (RD) of 14 July 2025, which also sets out the technical requirements. Peppol BIS will be the standard format.
Peppol works like a central digital postbox. A supplier sends an invoice through their software, it travels via Peppol and lands directly in the customer's accounting system. Old-school invoices sent by email won't count anymore.
This marks one of the biggest administrative changes Belgian firms have faced in years, with 1.2 million VAT-liable companies set for a mandatory switch.
If you have an active VAT number, the new rules apply to you. That includes: big firms, small and medium-sized enterprises (SMEs), micro-businesses, self-employed workers and freelancers.
With one exception: If you only work for private clients (B2C), you won't be required to send structured electronic invoices to them.
However (and this is crucial), you must still be able to receive structured e-invoices from your suppliers. That means all businesses, even those working only with individuals, must upgrade their systems by January 2026.
Any invoice that does not go through the Peppol network will simply be ruled invalid.
Businesses now have to choose from around 400 software packages approved by the Belgian Finance Ministry (SPF). Parties concerned will need software that's compatible with the Peppol network; dozens of partially free, low-cost and simple enough for the smallest independent worker tools exist, especially for small businesses with low invoice volumes.
Small SMEs and self-employed workers can deduct their invoicing software subscription costs, boosting tax relief. The change is part of an EU push for more transparency, simplify cross-border bookkeeping and mostly cut a specific form of tax fraud.
VAT carousel schemes
The reform is directly linked to a major type of tax fraud: VAT carousel schemes.
"VAT is only paid by the final customer. Everything in between [all the suppliers and intermediaries] deducts and reclaims VAT from the State," the Ministry of Finance spokesperson Florence Angelici told The Brussels Times.
"In carousel fraud, criminals create a chain of fake or real transactions, but one company in the chain simply never pays the VAT it owes. The State refunds VAT very quickly, so the fraudster pockets the money and disappears."
They added that Belgium used to lose millions each year to this scam.
"Nationally, we learned to detect and stop carousel fraud. But at the EU level, it's harder, because the goods cross borders and several administrations are involved. Electronic invoicing helps us track transactions in real time and shut down fraud before it spreads."
But with the deadline just weeks away, many firms are nowhere near ready. New figures from the Union of Middle Classes (UCM), a French-speaking Belgian organisation that represents and supports self-employed workers and French-speaking entrepreneurs, show 57% of Belgian companies have made the switch, leaving four in ten still scrambling.
Accountant Daniel La Mantia told RTL, "It's very complicated. More people ring me every day because they don't understand it. Some are still a bit lost."
Firms that don't comply face fines of up to €5,000. Those who register before 1 January will get a three-month grace period without penalties.
"VAT fines are high because it's an area where fraud is easy. The goal isn't to punish honest SMEs, it's to stop massive fraud that costs citizens hundreds of millions." Angelici concluded.
