Time is running out for preparing e-invoicing software and Peppol connectivity
With less than a year to go until e-invoicing becomes mandatory in Belgium for all domestic B2B transactions (between VAT-registered businesses), it’s time to take stock of the situation.
During 2024, significant progress was made in both legislation and market adoption of e-invoicing. On 5 November 2024, EU finance ministers’ approval of ViDA (VAT in the Digital Age) removed barriers to individual countries introducing their own mandates. As a result, Belgium’s own legislation mandating structured electronic invoicing will come into force on 1 January 2026 (having already been approved by the Chamber of Representatives on 8 February 2024).
Momentum is gathering, but 55% are not prepared
In anticipation of this mandate, many organisations have taken the opportunity to prepare themselves ahead of time by integrating appropriate software and procedures. Here at Flowin, the number of companies registered to receive e-invoices through our Peppol Access Point doubled in the second half of 2024.
However, the latest Future Ready Accountant Report, conducted in Q3 2024, showed that 55% of firms across Europe were not yet fully transitioned to e-invoicing. When asked why, the top three challenges were stated as inconsistent regulations, technical hurdles and lack of reliable tools.
In Belgium, the regulation is now defined and, thanks to Flowin’s API and Peppol Access Point provision, seamless integration with ERP and accounting systems can easily be achieved.
Belgium’s e-invoicing regulation: a clear ask, but a big task
From 1 January 2026, all B2B invoices issued between VAT-liable Belgian enterprises must be structured electronic invoices (otherwise known as e-invoices). These must comply with the EN 16931 standard or the Peppol BIS 3.0 format, and be shared via the Peppol network. Transaction partners can also agree to use an alternative EN 16931-compliant solution, but that is unlikely to be practical when multiple parties are in the mix.
Switching to e-invoicing, both as a sender and a recipient, is a multifaceted undertaking which takes time. While Peppol connectivity solutions such as Flowin can be implemented in around a week, preparing an organisation for this change requires a lot of investigation and discussion between multiple departments and stakeholders. For example, internal compatibility between departments and external compatibility with suppliers and customers needs to be considered before software providers can propose appropriate workflow solutions.
To ensure compliance by 1 January 2026 and avoid financial losses, every VAT-liable business in Belgium needs to take action now, if they have not already done so.
Key compliance requirements for e-invoicing software
Belgium’s e-invoicing regulation, which will operate as a CTC (Continuous Transaction Controls) model, mandates that invoices and credit notes must be produced in EN 16931 standard or Peppol BIS 3.0 format, and be exchanged via the Peppol network. For businesses to achieve this, they need software to generate and send on the outbound side, and to receive and process on the inbound side.
Failure to comply with Belgium’s e-invoicing mandate
Belgian businesses that do not comply with the country’s e-invoicing requirements after the mandate comes into force on 1 January 2026 risk financial losses on multiple fronts.
- Potential fines
The exact penalties for non-compliance with Belgium’s e-invoicing mandate are not yet clear. However, these may pose significant risk and jeopardise a company’s cash flow.
- Inability to transact
Belgium-based businesses that do not comply with the e-invoicing mandate will struggle to financially transact with compliant businesses, because they will not have the technical means to issue, send, receive or process invoices between the two entities.
- Competitive disadvantages
Failure to adopt e-invoicing means bearing unnecessary costs and risks. Compliant e-invoicing can be as much as €3.50 lower per invoice than paper or PDF invoicing. It also means invoices no longer get lost in the post/missed in email, pretty much eliminates invoicing fraud, and significantly lowers the administration workload.
How to prepare invoicing software for the 2026 e-invoicing regulation
Key aspects to address in preparation for Belgium’s upcoming mandate:
- Assessment of current invoicing systems
If current systems are not able to generate and process e-invoices, and send and receive them via Peppol, changes need to be made. All financial workflows need to be taken into account.
- Ongoing software updates and integrations
To remain compliant with Belgium’s e-invoicing legislation, e-invoicing software needs to be kept up-to-date with ongoing technical changes. It is essential to have a maintenance contract in place to assure this.
- Choosing a suitable e-invoicing solution or provider
Connecting into Peppol requires a certified Peppol Access Point. Software companies can build their own, but this can take up to twelve months and the Belgium e-invoicing mandate is less than twelve months away. The most practical solution is to utilise an off-the-shelf API, such as Flowin.
Factors to look out for when choosing a Peppol Access Point provider include Peppol certification, security and data protection standards, service reliability, integration capabilities, interoperability, scalability, support provision, pricing and ability to handle cross-border invoicing. (Flowin has an excellent offering in each of these aspects.)
Learn more: How to choose the right e-invoicing provider
Benefits of early compliance
Switching to e-invoicing actually benefits businesses in several ways. Early compliance with Belgium’s e-invoicing mandate means these benefits can be enjoyed sooner. Plus, businesses can avoid being caught up in the last-minute scramble to introduce new systems and integrations, when availability of suitable technical experts may be stretched.
- Improved efficiency and reduced invoicing errors
With e-invoicing, processes happen automatically with minimal human intervention.
- Faster payment processing and better cash flow
E-invoicing can significantly shorten the invoice processing cycle, improving cash flow management and efficiency.
- Enhanced security and fraud prevention
E-invoices move from vendor to buyer via a secure route, making it impossible for fraudsters to intercept and manipulate them. And because vendors need to satisfy strict requirements and verifications in order to send e-invoices, these cannot be issued from fake accounts.
Prioritise e-invoicing now to ensure compliance before 2026
The countdown to 1 January 2026 is well underway. If steps have not already been taken to prepare systems for e-invoicing, this needs to be initiated now as a matter of urgency.
While a lot of this work cannot be short-cut, the good news is it typically takes no more than a week to implement the Flowin API. With clear documentation, great technical support directly from developers, and a uniquely advantageous pricing structure, Flowin keeps costs down without compromising on standards.
But Flowin is only one component in the project. It is essential to prioritise e-invoicing preparation now to ensure compliance with Belgium’s regulations before the 1 January 2026 deadline.
Learn more: How the Flowin API helped speed up Doccle’s implementation