Mandatory Electronic Invoicing in Luxembourg Starting in 2028
Government Council Approves Draft Law on Electronic Invoicing
Electronic invoicing in Luxembourg is taking another major step toward widespread adoption across the business community. The Government Council has approved a draft law that will extend mandatory B2B electronic invoicing to domestic business transactions through a phased implementation between 2028 and 2029.
The reform builds on the experience gained through electronic invoicing in Business-to-Government (B2G) transactions and reinforces Peppol as the country's reference infrastructure for exchanging structured electronic invoices. It also prepares Luxembourg for the evolving European digital tax framework introduced under the VAT in the Digital Age (ViDA) initiative.
B2B Electronic Invoicing in Luxembourg
Luxemburg is advancing the digital transformation of invoicing through a draft law that introduces mandatory B2B electronic invoicing for domestic business-to-business transactions. Approved by the Government Council on July 17, 2026, the reform expands the electronic invoicing model already in place for Business-to-Government (B2G) transactions and establishes a phased implementation schedule between 2028 and 2029.
The initiative is part of Luxembourg's broader digital transformation strategy and prepares businesses for upcoming European requirements related to electronic invoicing and digital VAT reporting under the VAT in the Digital Age (ViDA) initiative.
The new legislation will require businesses to exchange structured electronic invoices, meaning invoices issued in a machine-readable format that can be processed automatically by ERP systems and accounting applications. This will reduce manual intervention while improving the automation of financial processes.
B2B Electronic Invoicing Implementation Timeline in Luxembourg
The draft law establishes a phased implementation schedule to give businesses sufficient time to prepare for compliance:
| Date | Obligation |
|---|---|
| January 1, 2028 | All businesses must be able to receive electronic invoices. |
| July 1, 2028 | Large and medium-sized businesses must issue electronic invoices for domestic B2B transactions. |
| January 1, 2029 | The issuance requirement will be extended to all remaining businesses. |
The draft law establishes a phased rollout of mandatory B2B electronic invoicing in Luxembourg. Beginning January 1, 2028, all businesses must be able to receive electronic invoices. The obligation to issue them will apply to large and medium-sized businesses starting on July 1, 2028, before being extended to all remaining businesses on January 1, 2029. The framework will be based on the Peppol network, which is already used for electronic invoicing with public sector entities.
Who Will Be Required to Comply?
The future legislation will apply to domestic B2B transactions between businesses established in Luxembourg.
The reform expands the electronic invoicing model that Luxembourg has used for several years in Business-to-Government (B2G) transactions, extending the obligation to commercial transactions between private businesses.
Peppol Will Be the Reference Infrastructure
The transition to mandatory B2B electronic invoicing builds on an already well-established infrastructure. Luxembourg currently uses the Peppol network for electronic invoicing with public sector entities and has achieved a high level of adoption.
The planned framework is based on the Peppol four-corner model, a widely adopted architecture across Europe for the secure exchange of electronic documents that is well positioned to support future digital tax reporting models.
B2G Electronic Invoicing in Luxembourg
Electronic invoicing is already mandatory in Luxembourg for all suppliers invoicing public administrations and government entities. This requirement is established under the Law of May 16, 2019, which transposes Directive 2014/55/EU on electronic invoicing in public procurement and completes the phased implementation that began in 2022.
The requirement forms part of Luxembourg's public sector digitalization strategy and aims to simplify administrative procedures, automate invoice processing, reduce processing costs, and improve transparency in public procurement.
The Peppol Network
Luxembourg uses the Peppol network as its reference infrastructure for exchanging electronic invoices with public sector entities. Invoices must be issued in a structured electronic format that complies with European standards, primarily Peppol BIS Billing 3.0, ensuring interoperability between businesses and public administrations.
The system is coordinated by the Ministry for Digitalisation and the Centre des technologies de l'information de l'État (CTIE), which provides the infrastructure required for public administrations to receive electronic invoices.
The experience gained through the B2G electronic invoicing framework provides the foundation for expanding mandatory electronic invoicing to domestic B2B transactions under the draft law approved in 2026, with a phased rollout planned between 2028 and 2029.
EDICOM, a Global Electronic Invoicing Platform for Luxembourg
The evolution of Luxembourg's regulatory framework toward mandatory electronic invoicing requires businesses to implement a solution capable of supporting both current public sector (B2G) requirements and the planned rollout of mandatory B2B electronic invoicing between 2028 and 2029.
EDICOM's International Electronic Invoicing Platform automates the exchange of electronic invoices while seamlessly integrating with leading ERP and business management systems, ensuring compliance with Luxembourgish and European regulatory requirements.
As a certified Peppol Access Point, EDICOM provides secure connectivity to the Peppol network, enabling businesses to exchange electronic invoices with public sector entities while preparing them for the future expansion of the B2B mandate.
In addition, the platform offers a scalable solution designed to support the ongoing evolution of European tax regulations, helping organizations adapt to initiatives such as VAT in the Digital Age (ViDA) and future electronic invoicing and digital tax reporting requirements.
