E-invoicing in the digital era
Driven by a large-scale European project, Belgium will require e-invoicing for all B2B transactions from 1 January 2026. This should allow companies to benefit from more efficient billing processes and improved cashflow and should also make it easier to exchange invoices between European countries. What is e-invoicing and what does it mean for your company? What investments should you make and what exactly should be taken into account?
What is E-Invoicing?
In today’s digital world, the way businesses communicate and conduct transactions is evolving. One of the most significant innovations is e-invoicing, or electronic invoicing. This advancement is more than just a trend—it’s a revolution in sending and receiving invoices that eliminates piles of paperwork.
E-invoicing uses standardized digital formats that seamlessly integrate with the accounting systems of both the sender and the receiver. This means that once an invoice is issued, it can be automatically processed, approved, and paid without the need for manual data entry. This efficiency not only accelerates the payment cycle (improving cash flow) but also significantly reduces the risk of errors that often occur with manual processing.
How Does Europe Plan to Implement E-Invoicing?
Over the past decade, PEPPOL has come into existence: a powerful, innovative network with standardized digital formats that enable the efficient exchange of invoices and documents. But what makes the technological innovation of PEPPOL so special?
PEPPOL stands for Pan-European Public Procurement On-Line and is designed to facilitate seamless digital communication between entities, even across borders. When connected to the PEPPOL network, you can exchange documents regardless of your location within the European Union or the internal system you use.
The strength of PEPPOL lies in its ability to bridge the digital divide, making transactions not only faster and safer but also significantly more cost-effective. This is particularly advantageous for small and medium-sized enterprises, as it eliminates much complexity and promotes international trade. The result? A more inclusive, accessible, and efficient market for all participants.
How Can Business Leaders Prepare for the Digitalization of Invoicing?
We guide our clients from start to finish. Using a proven methodology, we ensure the integration process is as smooth and painless as possible. From analyzing current processes and assisting with connection setup to training staff, monitoring performance, and providing post-go-live maintenance, we support our clients at every step of the process.
Additional Investment Deduction as a Fiscal Incentive
Good news for Belgian companies making the digital transition to the PEPPOL network: the federal government has introduced a series of fiscal incentives to encourage the implementation of e-invoicing systems and integration with the network.
One of the core elements of this policy is the increased investment deduction for digitalization. This applies from tax year 2025, linked to a financial year starting no earlier than January 1, 2024. Belgian companies can benefit from an increased investment deduction rate (120%) for the purchase of e-invoicing software. This means that 120% of the implementation costs (including advisory fees) can be deducted from the taxable profit, resulting in a direct tax saving. Specifically, this includes the monthly subscription costs of invoicing programs, all preparatory costs for e-invoicing, as well as the (advisory) costs of the accompanying process. For investments in digital fixed assets, the government has also announced an increased investment deduction of 20% starting from 2025 to ensure equal fiscal treatment.
In addition to fiscal benefits, Belgian enterprises can also access various subsidies and financing programs aimed at the digital transformation of businesses. These programs, offered by both federal and regional governments, are designed to alleviate the financial burden of implementing new technologies, including e-invoicing software.
Need a sounding board for e-Invoicing, financial processes, and digitalization? Are you specifically seeking financial or technological advice and want to be guided by the right professionals? Contact us to see how Unikoo can help your organization.
