Belgium: Draft law confirms e-invoicing grace period and clarifies the scope of mandate for nonresidents

The Belgian government on December 3, 2025, submitted a draft law amending several provisions of the value added tax (VAT) code to clarify how the electronic invoicing (e-invoicing) mandate will apply from January 1, 2026, and which taxpayers will be mandated to comply with it. The draft law also establishes a transition period with administrative tolerance to allow businesses time to adapt to the new e-invoicing requirements. This law project follows the announcement made by the tax authorities on December 2, 2025 (read TaxNewsFlash).

Background

Belgium has been progressively moving towards digital reporting and mandatory e-invoicing, in line with the EU’s VAT in the Digital Age (ViDA) Directive (2025/516) and the European standard for electronic invoicing (Directive 2014/55/EU). The new draft law confirms the effective date for implementing the e-invoicing mandate as January 1, 2026, while providing important clarifications about the scope of businesses required to comply. It also introduces guidance on a tolerance period for certain taxpayers and fallback measures to facilitate business readiness and ensure a smooth transition.

Overview of amendments

Scope

The draft law confirms the effective date of January 1, 2026, and clarifies that the obligation to issue structured electronic invoices applies when the buyer is a VAT-registered entity established in Belgium. It explicitly excludes buyers who are VAT-registered and identified in Belgium but not established in Belgium. This clarification resolves previous uncertainties regarding the mandate’s application to nonresident taxpayers. Belgian vendors must thus verify the buyer’s establishment status to determine if electronic invoicing is required.

Transition period

The draft law introduces a period of administrative tolerance, allowing businesses additional time to adapt without immediate penalties. This tolerance applies only if taxpayers have taken reasonable and timely steps to comply. Each case will be assessed individually, and sanctions may apply if insufficient efforts are demonstrated. The tax authority has emphasized that there will be no general extension of the mandate to maintain fairness and avoid delaying the benefits of e-invoicing.

Fallback and exceptions

A key practical provision addresses situations when the recipient of an e-invoice is technically unable to receive or accept it. The main points are:

• If the recipient cannot receive or accept an e-invoice due to technical reasons (e.g., lack of IT infrastructure or incompatibility with transmission networks), the vendor is not required to issue an e-invoice.
• In such cases, the vendor must issue a valid invoice in paper or non-structured electronic form (such as PDF or Word).
• This fallback does not exempt the recipient from their obligation to be capable of receiving e-invoices and may lead to administrative sanctions if they fail to comply.
• The law explicitly protects suppliers who have made all reasonable efforts to comply but face recipients who are not yet technically ready.
• This provision provides business continuity and avoids unfair penalties on suppliers during the digital transition.

Other provisions

The draft law confirms that third parties or the buyer on behalf of the vendor may issue e-invoices, but only with prior agreement and acceptance procedures. It partially transposes EU Directive 2006/112/EC and incorporates changes from Directive 2014/55/EU on e-invoicing in public procurement, aligning Belgian VAT invoicing rules with the ViDA Directive effective from January 1, 2026.

Next steps

Further details are expected to be introduced in the legislative process, especially regarding the issuance of invoices when the recipient is not able to receive them in electronic format.

For further information, contact a KPMG tax professional:

Philippe Stephanny | philippestephanny@kpmg.com

Ramon Frias | ramonfrias@kpmg.com