eInvoicing in Luxembourg

Mandatory B2G eInvoicing: As of 18 March 2023, Luxembourg mandates that all economic operators issue compliant electronic invoices to public sector bodies for public procurement contracts. This requirement aligns with the European eInvoicing standard (EN 16931), ensuring that all invoices are processed electronically without any thresholds.
Optional B2B and B2C eInvoicing: There are no legal requirements for businesses to use electronic invoices in transactions with other businesses (B2B) or consumers (B2C). The adoption of eInvoicing in these sectors remains voluntary and relies on mutual agreements between parties.
Infrastructure and Monitoring: Luxembourg uses the Peppol network as its backbone for eInvoicing, enabling streamlined communication between public sector bodies. There is no real-time VAT reporting system, but a common monitoring framework for Peppol requires service providers to report monthly on eInvoicing activities, helping authorities assess compliance and effectiveness within public transactions. Future legislation is anticipated to further enhance eInvoicing requirements in line with the EU’s VAT in the Digital Age directive.

Luxembourg eInvoicing Timeline

Date	Milestone
16 May 2019	Law on eInvoicing in Public Procurement enacted, transposing Directive 2014/55/EU.
18 April 2019	Central public bodies required to receive and process compliant eInvoices.
18 April 2020	Sub-central public entities (e.g. municipalities) mandated to comply.
13 December 2021	Amendments introduced deadlines for suppliers based on company size.
18 May 2022	Large companies required to issue compliant eInvoices to public bodies.
18 October 2022	Medium-sized companies brought under the mandate.
18 March 2023	Small and newly established businesses required to comply.
January 2024	Peppol service providers required to report monthly on eInvoice traffic.
2024	Nearly 1.4 million eInvoices received; Luxembourg ranks 4th globally per capita in Peppol usage.
By July 2030	Anticipated alignment with EU’s VAT in the Digital Age (ViDA) directive.

Transaction Type	Established Entity	Non-Established Entity	Mandatory?	Notes
B2G	✅ Yes	✅ Yes	✅ Mandatory	Since 2019 for central bodies; phased in for suppliers by size (2022–2023)
B2B	❌ No	❌ No	❌ Not mandatory	Voluntary use of Peppol allowed
B2C	❌ No	❌ No	❌ Not mandatory	No legal requirement for consumers
E-Reporting	⚠️ Partial	❌ No	⚠️ Limited	Monthly reporting required for Peppol service providers since Jan 2024

Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE

E-invoicing