The coalition agreement of the Belgian federal government includes the introduction of a near real-time reporting obligation by 2028. This e-reporting requirement will be introduced alongside the mandatory B2B e-invoicing obligation, which will become applicable from 1 January 2026 for most transactions between Belgian VAT-registered and established businesses.
These initiatives are part of a broader global trend towards mandatory e-invoicing and e-reporting, including the EU’s VAT in the Digital Age (ViDA) package. They aim to combat VAT fraud and reduce the VAT compliance gap, which in Belgium amounted to €4.5 billion or 11% of the total VAT tax liability in 2022.
Current knowledge on the e-reporting obligation
The near real-time reporting obligation will complement the mandatory B2B e-invoicing requirement, effective from January 2026. Peppol will serve as the default standard for exchanging e-invoices between trading partners. Invoice data will be transmitted via a secure four-corner network of approved participants known as “Access Points.”
The Belgian tax authorities are expected to join the Peppol network as a fifth corner to access transactional invoice data, covering both inbound and outbound transactions, in near real-time. To support this development, Belgium is among the dozen tax authorities participating in the Peppol ViDA pilot, which aims to explore and demonstrate Peppol’s suitability for the digital reporting requirements set to be introduced as part of ViDA.
Currently, there is no draft legislation or proposal available. However, it is known that the e-reporting obligation will need to align with the VAT in the Digital Age (ViDA) framework, which will introduce mandatory e-invoicing and e-reporting for intra-EU transactions starting 1 July 2030.
In addition to invoice systems, the coalition agreement also stipulated that cash registers and payment systems would be directly connected to the tax administration.
An advantage of these upcoming changes is the expected reduction in the VAT compliance burden, as the near real-time reporting will lead to the abolishment of the yearly client listing. This shift illustrates a broader transition from traditional periodic VAT compliance obligations to a real-time VAT compliance model.
Impact
The introduction of e-reporting in Belgium will provide the Belgian tax authorities with near real-time insights into VAT invoice data at a transactional level. This digital processing, combined with data mining techniques and cross-referencing with other data sources, potentially utilising AI, enables the tax authorities to detect anomalies and errors automatically.
The insights obtained through digital processing and data mining will facilitate more tailored and effective tax audits in the field of VAT and beyond. Experience from Italy, where transaction-level invoice data has been available for several years, indicates that improved VAT audit capabilities can also enhance direct tax revenues.
Overall, the forthcoming near real-time reporting requirements will increase scrutiny and accountability, making it imperative for businesses to ensure their VAT invoicing processes are robust and compliant. The Belgian tax system imposes stringent penalties, which can quickly accumulate and result in a substantial financial burden if not addressed promptly.
Key takeaway
In the coming years, people, processes, and technology will need to adapt to accommodate these new VAT compliance requirements. It is crucial for companies preparing for the forthcoming B2B e-invoicing mandate to consider the government’s end ambition, real-time reporting, when defining their strategy, selecting technology, and assessing the impact on data availability and accuracy.
E-invoicing and e-reporting are not merely IT integration or finance automation projects; they are strategic compliance initiatives that directly impact tax exposure and operational efficiency.
