Luxembourg proposes mandatory B2B e-invoicing from 2028

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Luxembourg publishes draft law for mandatory B2B e-invoicing

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The proposed legislation introduces a phased rollout based on the Peppol network.

Luxembourg has taken the next step towards mandatory B2B e-invoicing. On 17 July 2026, the Government Council approved a draft bill that would make structured electronic invoicing mandatory for domestic business-to-business transactions.

The proposal extends the country’s existing electronic invoicing framework for public sector transactions (B2G) to the private sector. If adopted, the legislation will introduce a phased implementation between 2028 and 2029, with Peppol serving as the interoperability network for exchanging invoices.

While the bill still needs to complete the legislative process, organisations operating in Luxembourg should start preparing now. The proposal provides a clear indication of the direction of travel and aligns with the wider European shift towards digital VAT compliance.

Peppol will underpin the new framework

According to the Luxembourg Chamber of Commerce, the future B2B mandate will rely on the Peppol network for the secure exchange of structured electronic invoices.

Peppol enables organisations to exchange invoices directly between different ERP systems and service providers using common technical standards. This approach supports interoperability and avoids the need for businesses to establish separate connections with every trading partner.

At this stage, the government has not yet published detailed technical specifications or confirmed which invoice syntax will be required.

If your organisation is unfamiliar with Peppol, our guide explains what Peppol is and why it is becoming the European standard for e-invoicing.

Proposed implementation timeline

The draft bill introduces a gradual rollout to give organisations sufficient time to prepare.

• 1 January 2028: all businesses must be able to receive electronic invoices.
• 1 July 2028: large and medium-sized businesses must issue electronic invoices.
• 1 January 2029: the issuance obligation extends to all remaining businesses, including SMEs.

This phased approach allows companies to first establish their receiving capabilities before introducing mandatory electronic invoice issuance.

Part of the wider European ViDA transition

Luxembourg’s proposal fits within the broader implementation of the EU’s VAT in the Digital Age (ViDA) package.

ViDA introduces mandatory Digital Reporting Requirements (DRR) for intra-EU cross-border B2B transactions from 1 July 2030, based on structured electronic invoicing. While ViDA does not require Member States to introduce domestic B2B e-invoicing, many countries are choosing to implement national mandates ahead of the European deadline.

Luxembourg now joins a growing list of countries that are introducing domestic e-invoicing to modernise VAT reporting and prepare businesses for future European requirements.

For a broader overview of developments across Europe, see our latest e-invoicing regulatory updates.

What happens next?

The proposal must still pass Luxembourg’s legislative process before becoming law.

In parallel, the Chamber of Commerce has announced that it intends to support businesses through information sessions, practical workshops and subsidy schemes to help organisations prepare for the transition and adopt compliant software solutions.

Further technical guidance is expected as the implementation progresses.

Changes companies need to implement

Although the legislation has not yet been formally adopted, organisations should begin preparing well before the first compliance deadline.

• Assess whether your current ERP and finance systems support structured electronic invoicing.
• Ensure your organisation can receive Peppol invoices before January 2028.
• Develop a roadmap for issuing compliant electronic invoices ahead of the 2028 and 2029 deadlines.
• Review your finance processes, supplier onboarding and master data to support structured invoice exchange.
• Monitor future guidance on technical specifications and potential domestic e-reporting requirements.

Starting preparations early will help organisations avoid last-minute implementation projects and ensure they are ready when the legislation enters into force.