Luxembourg is planning to expand its existing e-invoicing system from B2G transactions to domestic B2B transactions. In mid-July, the Government Council announced a draft bill that would make e-invoicing mandatory for companies conducting domestic B2B transactions. The system will rely on the Peppol framework, and the implementation will be completed in several phases.

Implementation Timeline and Government Support

The reform of the e-invoicing system is intended to bring Luxembourg’s legislation into line with Council Directive (EU) 2025/516, which updates the EU VAT framework as part of the ViDA reforms. Additionally, the draft law supports the country's broader efforts to digitalize administrative and financial processes.

The draft law, which is not yet final and will be confirmed as it progresses through the Luxembourg parliamentary process, proposes a three-phased implementation timeline. Accordingly, from January 1, 2028, all companies will be required to receive e-invoices. From July 1, 2028, large and medium-sized businesses will also have to issue e-invoices for relevant B2B transactions. From January 1, 2029, this issuance obligation will be extended to all other businesses, including smaller companies.

The government plans to support businesses in adapting to the new mandatory e-invoicing requirements through practical guidance and financial assistance. As part of those efforts, the Chamber of Commerce intends to organize information sessions and workshops and update its existing practical guide to help businesses understand and implement the new system. 

Furthermore, financial support will also be available to help companies purchase software that meets the new e-invoicing requirements.

Final Thoughts

For this draft law to become official law and come into effect, it is necessary to complete the legislative process, where the lawmakers will finalize the implementation dates, scope, and technical standards. In the meantime, businesses operating in Luxembourg should begin assessing their invoicing systems and preparing to receive Peppol-compliant e-invoices ahead of the planned January 1, 2028, deadline.