Luxembourg: Draft law expanding scope of mandatory e-invoicing
Draft law would expand mandatory e-invoicing beyond public procurement
The Luxembourg government on July 30, 2026, released a draft bill significantly expanding the scope of mandatory e-invoicing in Luxembourg beyond public procurement.
The draft law would introduce a structured e-invoicing mandate for domestic business-to-business (B2B) transactions, in addition to the existing business-to-government (B2G) framework. The draft law draws on the flexibility granted to member States under the EU’s VAT in the digital age (ViDA) package and represents Luxembourg’s first national step towards the EU-wide digital reporting requirements which will apply to cross-border B2B transactions from July 1, 2030.
The first obligations are expected to apply from January 1, 2028, when all in-scope recipients established in Luxembourg will need to be able to receive and process compliant e-invoices. Transitional technical solutions will remain available during 2028 for businesses falling within the new domestic B2B scope, with the applicable deadline depending on their size.
The obligation to issue and transmit compliant e-invoices will be introduced in three phases:
- From January 1, 2028, for large businesses
- From July 1, 2028, for medium-sized businesses
- From January 1, 2029, for all other businesses
Business size criteria are defined by reference to the balance sheet (€7.5 million), turnover (€15 million), and headcount (50 full time employees), assessed based on the 2026 financial statements.
The bill will now follow the ordinary legislative process, including notably the opinion of the Council of State and of the relevant professional chambers, before it can be adopted and become effective.
Read an August 2026 report prepared by the KPMG member firm in Luxembourg