Luxembourg, 17 July 2026 – Luxembourg’s Council of Government, chaired by Prime Minister Luc Frieden, has approved a bill that extends mandatory e-invoicing Luxembourg to domestic B2B transactions. Until now, the obligation only applied to invoicing towards government bodies (B2G). With this decision, Luxembourg takes a concrete step in implementing the European ViDA directive (VAT in the Digital Age).
What exactly changes
The bill amends the law of 16 May 2019 on e-invoicing in public procurement and concession contracts, and the amended VAT law of 12 February 1979, to transpose Article 1 of Council Directive (EU) 2025/516. That directive adapts European VAT rules to the digital age. In practice, this means e-invoicing Luxembourg becomes mandatory in phases for commercial transactions between businesses established in Luxembourg.
The timeline is phased:
- From 1 January 2028, all businesses must be able to receive electronic invoices.
- From 1 July 2028, the obligation to issue electronic invoices applies to large and medium-sized businesses.
- From 1 January 2029, the issuing obligation extends to all other businesses, including smaller enterprises.
In the same meeting, the Council also approved a draft Grand-Ducal regulation setting out the common delivery network: businesses must invoice via a shared technical infrastructure, so senders and recipients are not forced to deploy separate, non-interoperable solutions. That infrastructure runs via a Peppol four-corner network, the same architecture already used in the Netherlands and Belgium.
The bill still needs to be approved by the Chamber of Deputies before it enters into force.
Why this matters for Dutch and Belgian businesses
Luxembourg is an important business partner for Dutch and Belgian companies, particularly in financial and business services. Businesses that supply goods or services to customers established in Luxembourg, or that have their own establishment there, will face the same obligation as local businesses once the mandate takes effect.
Because Luxembourg is choosing a Peppol four-corner network, e-invoicing Luxembourg aligns with the infrastructure that Dutch and Belgian businesses already use or are setting up for their own obligations. Organisations that already work with a Peppol Service Provider for the Dutch or Belgian market generally will not need an entirely new technical solution, but should verify that their provider also supports connectivity to the Luxembourg network.
Luxembourg in a European perspective
Luxembourg is following the example of Belgium, where a comparable obligation has applied since 1 January 2026 via a 4-corner Peppol model, and is ahead of the European ViDA timeline, which only makes cross-border digital reporting mandatory from 1 July 2030. Unlike Belgium, Luxembourg has not yet announced a separate digital reporting (e-reporting) obligation; the only reporting requirement currently foreseen is the cross-border ViDA obligation from 2030.
What to do
Businesses with Luxembourg customers or establishments should already discuss with their Peppol Service Provider whether connectivity to the Luxembourg network is on the roadmap. Since the bill still needs parliamentary approval, exact dates are not yet final, but the direction is clear: e-invoicing Luxembourg is becoming the norm for B2B transactions, just as it already is in Belgium and, in time, across the rest of the European Union.
Compare Peppol Service Providers active in the Luxembourg market and make sure your organisation is prepared before the obligation takes effect.
