Invoicing and Tax regulation in Belgium

Navigating Belgium’s evolving e-invoicing and tax regulations can be challenging. This guide provides an overview of the latest requirements to help you stay compliant and avoid potential penalties.

In the guide, we will cover:

Regulations Timeline

Belgium E-invoicing Requirements (2024 Update)

Tax Regulations

Digital Reporting

Penalties

Achieving Global Invoicing and Tax Compliance with Space Invoices

 

Regulations Timeline

A quick overview of all current and upcoming regulations that Belgium mandates regarding e-invoicing and digital reporting. For more details, check out the sections below.

Regulations in Effect:

Mandatory e-invoicing for all B2G transactions,

Voluntary e-invoicing for B2B and B2C transactions.

Upcoming Changes to Belgium E-invoicing:

1st January 2026: Mandatory e-invoicing for B2B transactions in Belgium

 

Belgium E-invoicing Requirements (2024 Update)

In Belgium, current regulations mandate e-invoicing for all B2G transactions. While B2C and B2B e-invoicing remains optional, many Belgian businesses have already proactively adopted this technology. By 2026, this regulation will extend to all B2B transactions, regardless of size.

To support this transition, Belgium has implemented:

The PEPPOL network,

A centralized platform called MERCURIUS.

Governmental Body Responsible for E-invoicing

The Federal Public Service (FPS) Finance is responsible for e-invoicing regulations in Belgium.

Click here to visit their official website.

E-invoicing Formats

In Belgium, e-invoices are typically exchanged using the XML format, usually in either Universal Business Language (UBL) or PEPPOL BIS Billing 3.0. Businesses connect to the MERCURIUS platform, facilitating the exchange of electronic invoices between B2G and supporting the Belgian government’s commitment to streamlined digital invoicing.

E-invoice Requirements

Invoices must be issued at the time of supply, and for taxable customers, they must be issued by the 15th of the month following the supply. Invoices can be in either electronic or paper form and must include the following components:

Date of issuance

A unique sequential number

Seller's Information: Name, full address, and VAT number

Customer Information: Name, full address, and VAT number

Description of Goods/Services: Detailed description, including quantity and unit price

Net Amount

Tax Details: VAT rate(s) and the amount of VAT for each product

Additional Information: VAT exemption reference, reverse-charge, and information about the fiscal representative if applicable.

Certain transactions may require additional information:

B2C Transactions:

E-invoice Archiving

E-invoices must be archived for a minimum of seven years.

 

Tax Regulations

Value Added Tax (VAT)

The standard VAT rate in Belgium is 21%, which applies to most transactions. However, Belgium also enforces reduced VAT rates:

12% rate: Applies to certain foodstuffs, agricultural supplies, social housing, and some energy products;

6% rate: Applies to essential goods such as food, pharmaceuticals, books, and water supplies;

0% rate: Applies to goods like food, pharmaceuticals, books, certain newspapers, and recycled materials.

Corporate Tax

The standard corporate tax rate in Belgium is 25%. There is an increased rate of 20% for SMEs under 100k or companies that are more than 50% owned by individuals.

VAT on Digital Services in Belgium

Digital services in Belgium are generally subject to a 21% VAT. However, foreign companies selling digital services to Belgian consumers have some extra regulations:

Required to register for VAT purposes: after the first B2C sale in Belgium;

B2C Transactions: VAT is charged based on the customer's location. Therefore, if you sell digital products to consumers in Belgium, you must apply the 21% VAT rate.

Digital services that are subject to VAT include e-books, software downloads, music, movies, games, and other electronically supplied services.

 

Digital Reporting

Belgium has already introduced several digital reporting requirements, with more to come:

B2G e-invoicing is required for all companies;

B2B e-invoicing will be mandatory in 2026;

B2C e-invoicing is voluntary;

Tax returns must be submitted electronically through the Intervat platform.

VAT Registration and Thresholds

Belgium and non-established businesses have no VAT registration threshold;

Businesses selling intra-EU distance (B2C telecommunications, broadcasting, and digital services) have a threshold of €10,000 per calendar year.

VAT Returns and Payments

In Belgium, VAT reporting obligations are structured as follows:

Monthly Reporting: Generally, VAT returns must be submitted by the 20th day of the month following the reporting period.

Quarterly Reporting: Certain taxpayers, such as those with an annual turnover not exceeding €2,500,000 and specific thresholds for certain goods, may opt to file VAT returns quarterly. These returns are due by the 20th day of the month following the end of the quarter.

 

Penalties

Non-issuance of invoices or issuance of incorrect invoices is fined at 200% of the VAT amount due.

Non-compliance with invoicing requirements is fined from €50 to €5,000.

 

Achieving Global Invoicing and Tax Compliance with Space Invoices

One way to comply with (e-)invoicing, tax, and reporting regulations in Belgium is to use a provider like Space Invoices.

You will be able to:

Use one API for current and future global tax and invoicing compliance, including Belgium

Save time and money with integration that takes less than a week

Support and upsell your clients worldwide, including Belgium

Ensure all documents are archived and successfully reported to responsible institutions

Become a one-stop shop for current and future clients

Streamline processes and eliminate manual errors, saving time and money

Do you have questions about achieving compliance in Belgium?

We are ready to help.

 

The information in this guide is strictly informative, as regulations and timelines change frequently. While we make every effort to monitor updates and maintain the accuracy of our content, we recommend consulting with a tax professional or e-invoicing specialist for the most reliable and personalized advice. This guide was last updated on November 7, 2024.

Looking to automate real-time reporting and tax compliance for Belgium? Let's talk