Belgium to Implement Near Real-Time E-Reporting for VAT by 2028

February 17, 2025

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Belgium is set to revolutionize its Value Added Tax (VAT) compliance system by introducing near real-time electronic reporting starting January 1, 2028. This initiative aims to enhance VAT fraud detection and streamline compliance for businesses operating within the country.

Key Implementation Dates

January 1, 2026: Mandatory adoption of structured Business-to-Business (B2B) e-invoicing using the Peppol framework.
January 1, 2028: Launch of near real-time e-reporting, requiring businesses to automatically transmit invoice data to tax authorities.

Impact on Businesses

The Belgian federal coalition government's 2025-2029 agreement confirms the move towards near real-time reporting by 2028. This development follows the 2026 mandate for structured B2B e-invoicing, underscoring Belgium's commitment to modernizing VAT compliance.

The forthcoming e-reporting system will utilize a five-corner Peppol model, facilitating near-live transmission of invoice data to tax authorities. This approach will replace the existing annual customer listing, thereby enhancing the detection of VAT fraud.

Alignment with European Initiatives

These changes are in line with the European Commission's VAT in the Digital Age (VIDA) rules, which aim to modernize VAT reporting and compliance across member states.

Actionable Steps for Businesses

To prepare for these significant changes, businesses should:

Adopt Peppol-Based Invoicing Systems: Ensure compliance with the structured e-invoicing mandate by January 2026.
Upgrade ERP and Invoicing Software: Enhance systems to support real-time e-reporting ahead of the 2028 deadline.
Monitor Sector-Specific Mandates: The fiscal cash register mandate will be extended to the entire hospitality sector and other high-risk industries. Affected businesses should implement automated reporting solutions to remain compliant.

Conclusion

Belgium's transition to near real-time e-reporting represents a significant shift in VAT compliance, aiming to reduce fraud and streamline processes for businesses. By proactively upgrading systems and adhering to the outlined timelines, companies can ensure a smooth transition to the new requirements.

Sources: Belgian Federal Public Service Finance, European Commission – VAT in the Digital Age (ViDA)

What is the timeline for Belgium's new VAT reporting requirements?

Mandatory B2B e-invoicing begins on January 1, 2026, followed by near real-time e-reporting on January 1, 2028.

What is the Peppol framework?

Peppol is a standardized e-invoicing framework that facilitates the electronic exchange of business documents, ensuring interoperability across different systems.

How will near real-time e-reporting affect my business?

Businesses will be required to automatically transmit invoice data to tax authorities, enhancing compliance and reducing the risk of VAT fraud.

Which industries are specifically impacted by the fiscal cash register mandate?

The mandate will be extended to the entire hospitality sector and other high-risk industries.

How should businesses prepare for these changes?

Companies should adopt Peppol-based invoicing systems by 2026 and upgrade their ERP and invoicing software to support real-time e-reporting before 2028.

What are the consequences of non-compliance with the new VAT reporting requirements?

Non-compliance may result in penalties and increased scrutiny from tax authorities. It's essential for businesses to stay informed and adhere to the new regulations.

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