Following Belgium and the Netherlands, Luxembourg is to become the last of the BENELUX countries to implement mandatory e-invoicing for public authorities. Luxembourgian taxpayers will be required to send invoices in an electronic format, which will replace traditional invoices. Here is all you need to know about the new regulations.
As stated by the Act of 13 December 2021 amending the Act of 16 May 2019 on electronic invoicing in public procurement and concession contracts, large Luxembourgian companies are obliged to send e-invoices to public authorities as of the 18th of May 2022. This is only five months after the legal framework concerning B2G transactions in Luxembourg entered into force.
The timeline of B2G e-invoicing in Luxembourg
Luxembourg is going to use the PEPPOL network for B2G e-invoicing. In order to be part of the PEPPOL network and be able to send invoices to public entities in Luxembourg, a company has to be connected to a PEPPOL Access Point. This is a specialized e-invoicing service provider certified by the PEPPOL network, which complies with the requirements of the PEPPOL network by converting an invoice into the necessary PEPPOL BIS 3.0 format and transferring it through the standard PEPPOL channel (AS4).
Once a company is connected to an Access Point, it is connected to all the PEPPOL participants in the network and can exchange not only invoices with Luxembourgian public authorities, but also other document types with any private company which is also connected to the network through their Access Point. How the PEPPOL mechanism works can be easily understood looking at the “four-corner-model”:
In this model, the invoice issuer sends the document in any format the sender wants (for example, IDOC, XML, EDIFACT, etc.). It doesn’t matter which format the issuer chooses, because the document is then sent to the sender’s Access Point, responsible for the conversion of the document and transmission to the receiver’s (public entity or private company) Access Point in accordance with the PEPPOL standards. After that, the receiver’s Access Point transfers the invoice in the required format to the receiver. This makes the document exchange between the buyer and the seller convenient and easy, as document conversion and transfer are done by the Access Point in a secure and legally compliant manner.
For smaller and less technologically mature companies, there will be an online form provided to issue and transmit compliant e-invoices by manually entering the core elements of the invoice in the form fields and submitting the completed form. Alternatively, a company may upload an already compliant electronic invoice and submit it via the completed form.
Comarch is a certified PEPPOL Access Point that can mediate in the e-invoicing exchange process, as shown in the image below. Thanks to it, you can make sure your invoices are fully compliant with the PEPPOL standard.
The Comarch e-Invoicing solution is fully compliant with Luxemburg law and supports accounts payable and accounts receivable processes.
If your company is based or has branches in Serbia, you need to start preparing your billing and tax systems to comply with the new requirements. Click on the button below to get in touch with one of our experts.
E-invoicing for B2B transaction is not mandatory yet.
Issuing electronic invoices, in terms of B2G transactions, is being introduced partially as follows:
E-invoices must comply with European standard EN 16931-1 :2017. There is a possibility to utilize XML UBL or XML UN/CEFACT CII.
Sending B2G e-invoices in Luxembourg is possible thanks to the PEPPOL network.
Each economic operator has several options to make itself fit to issue and transmit e-invoices via Peppol:
Integrity and authenticity can be ensured by any method, including Advanced Electronic Signature as the one of the examples mentioned in the Notes to the VAT Law.
Storage period – 10 years
PEPPOL is a set of artifacts and specifications that gives the possibility to exchange invoices in the public/B2G sector. Luxembourg uses the PEPPOL network for B2G e-invoicing.
Large Luxembourgian companies have been obliged to send e-invoices to public authorities since the May 18ths 2022.
For now, the obligation concerns large Luxembourgian companies. In October 2022, it will cover medium-sized taxpayers, and in March 2023 will be extended to small and new businesses.