The Luxembourg Government Council has recently taken a decisive step by approving a bill that will extend the mandatory use of electronic invoicing to B2B (business-to-business) transactions nationwide.
This measure, which expands upon the 2019 law that already mandated it for the B2G (public) sector, is fully aligned with the European ViDA initiative (VAT in the Digital Age). Its goal is to modernize the business landscape, reduce administrative burdens, and improve tax traceability across European Union countries. If your company operates in Luxembourg or has subsidiaries in the country, the clock is already ticking: it is essential to understand the deadlines and technical requirements to adapt your financial systems in time to avoid supply chain disruptions, operational issues, or penalties. In this article, we cover everything you need to know.
When will B2B electronic invoicing become mandatory in Luxembourg?
As other European countries have done, the introduction of electronic invoicing for B2B in Luxembourg will follow a phased implementation schedule. This approach is designed to facilitate the technological transition based on the size of each company.
The Luxembourg Chamber of Commerce has outlined the following key dates in its schedule:
• January 1, 2028: starting on this date, all companies established in Luxembourg, regardless of their size, will be required to be capable of receiving electronic invoices.
• July 1, 2028: the issuance of electronic invoices will become mandatory for large and medium-sized enterprises.
• January 1, 2029: the obligation to issue electronic invoices will be extended to the rest of the business sector, including small and micro-enterprises.
Technical requirements for eInvoicing in Luxembourg: Peppol and structured data
At a technical level, the project coordinated by the Ministry for Digitalisation and the CTIE (Centre des technologies de l'information de l'État) establishes a very clear framework. The major innovation (and advantage for many internationalized companies) is that Luxembourg has decided to adopt a four-corner model based on the Peppol network.
This decision does not start from scratch, but rather builds upon the infrastructure the country has already been successfully using for B2G invoicing. What are the technical implications of this for your ERP?
• Goodbye to the traditional PDF: invoices must be structured electronic documents (machine-readable) that can be automatically processed by accounting systems.
• The chosen standard: the system is expected to follow the Peppol BIS Billing 3.0 standard, thereby ensuring European interoperability.
• Connection: companies will be able to use certified service providers (Access Points) to send and receive their invoices securely, connecting their SAP systems or other ERPs directly to the network.
Support and preparation for companies in Luxembourg
To ensure the success of this digital transition, the Luxembourg Chamber of Commerce has announced that it will support companies throughout the entire process. Plans include organizing information sessions, practical workshops, and decision-making support tools.
In addition, they will update their Practical Guide to Electronic Invoicing Financial assistance has been confirmed to help companies acquire the software needed to meet the new legal requirements.
Can Brait help my company adopt electronic invoicing in Luxembourg?
The answer is yes. At Brait, we have advised and helped dozens of companies invoice worldwide and comply with each country's electronic invoicing regulations, centralizing the entire process in a single ERP. We have extensive experience and several success stories from companies in a wide range of sectors.
If you work with SAP, adapting your system with Invictia to Peppol-based regulations like those in Luxembourg is very simple. It is our Plug & Play add-on for SAP that simplifies accounting processes and automates electronic invoicing globally (supporting formats such as UBL, CII, or Factur-X) without the need to apply complex SAP notes.
Furthermore, this solution integrates natively with leading tools like OpenText Vendor Invoice Management (VIM) for the end-to-end receipt and automation of accounts payable. It all depends on what your company needs; we take care of making it happen.
If you need to prepare your SAP system for electronic invoicing in Luxembourg, France, Germany, Spain (Crea y Crece Law), Latin America or any other country, get in contact us!
