Article

Electronic Invoicing in Luxembourg

22 April 2023

Luxembourg is the latest member of the BENELUX trio to implement mandatory e-invoicing for public authorities, following in the footsteps of Belgium and the Netherlands.

Electronic invoicing in Luxembourg, anchored in the Act of 13 December 2021, requires large companies operating in the countries to send e-invoices to public authorities. In addition, companies outside of Luxembourg that issue invoices to public entities within the country must send them electronically. Unimaze explores the specifics of Luxembourg's e-invoicing regulations, how they impact businesses operating in the country, and the advantages of switching to electronic invoicing. We'll also tell you how you can leverage Unimaze e-invoicing solutions to digitize how to send and receive invoices even if you're not a supplier to public entities.

E-Invoicing in Luxembourg - A Quick Overview

E-Invoicing/CTC Model

Post Audit

Mandatory Infrastructure

  • B2G: Peppol
  • B2B: Not Applicable

Mandatory e-Invoice Format

  • B2G: EN compatible, Peppol BIS
  • B2B: Not Applicable

Issuing Mandate

  • B2G: Phased roll-out from 18 May 2022
  • B2B: No explicit requirements

Receiving Mandate

  • B2G: All contracting authorities
  • B2B: Buyer’s consent is required

Digital Signature

Not Required

Archiving Abroad

Allowed under specific conditions

Archiving Period

10 Years

Electronic Invoicing in Luxembourg - Implementation Timeline

Implementing e-Invoicing in Luxembourg has been a gradual process, with the government taking a phased approach to its rollout.

2019:

The first step was taken in May 2019 when the Act on electronic invoicing in public procurement and concession contracts was introduced.

This legislation aimed to promote electronic invoicing in public procurement and required public authorities to accept e-invoices from suppliers.

2022:

The next implementation phase began on 18 May 2022, when large companies operating in Luxembourg were required to send e-invoices to public authorities.

This includes companies outside Luxembourg that issue invoices to public entities in the country.

In October 2022, the obligation was extended to medium-sized taxpayers.

In the third and final phase, which started in March 2023, small and new businesses must implement electronic invoicing when dealing with public authorities.

What Is the Required Format for an E-Invoice in Luxembourg?

There are numerous reasons why your company should consider switching to e-invoicing:

  • Increased Efficiency: The ability to send and receive e-invoices in Luxembourg allows businesses to streamline their invoicing processes, eliminating the need for manual data entry and reducing the potential for errors.

This can result in faster payment processing times and improved cash flow.

  • Cost Savings: E-invoicing can reduce the costs of paper-based invoicing, such as printing, postage, and storage.

Additionally, the time and resources saved by automating invoicing processes can be redirected to other business areas.

  • Improved Accuracy: Electronic invoicing minimizes the risk of errors and discrepancies, as invoices are electronically generated and transmitted, reducing the potential for manual errors or data entry mistakes.
  • Environmentally Friendly: E-invoicing reduces paper waste, helping to minimize the environmental impact of your business.
  • Regulatory Compliance: Many countries, including Luxembourg, are moving towards mandatory e-invoicing for public procurement, meaning that businesses that do not adopt e-invoicing may be at a disadvantage when it comes to securing government contracts.

Check out our in-depth guide on more benefits of e-invoicing.

How To Use Electronic Invoicing in Luxembourg?

Two manual technical alternatives are available on MyGuichetTo to transmit an electronic invoice in Luxembourg, in addition to using the common delivery network Peppol (peppol.eu).

One option is to use the online form to manually enter the required invoice information into the form fields and submit the completed form.

The other option is to download an already compliant electronic invoice and submit it via the completed form.

These backup solutions are meant for businesses not yet equipped to send electronic invoices automatically via Peppol.

They may be suitable for a transitional phase and for those who need to send a limited number of invoices to public sector bodies (no more than 10-20 per year).

While businesses can use My GuichetTo to transmit e-invoices in Luxembourg, the best sustainable, economical, and seamless strategy is to partner with a Peppol-certified electronic service provider like Unimaze.

Unimaze is Helping Luxembourgian Businesses Implement e-Invoicing

Here’s why you should work with Unimaze as your e-invoicing service provider in Luxembourg:

  1. Unimaze is a leading provider of e-invoicing solutions for businesses around the world.
  2. We provide a comprehensive suite of e-invoicing tools and services to streamline your invoicing process.
  3. Our platform is highly secure, using advanced encryption technology and adhering to strict data privacy regulations.
  4. Unimaze's e-invoicing solutions are highly customizable, allowing businesses to tailor the ERP systems to their specific needs.
  5. We provide comprehensive support services, including training and ongoing technical support.
  6. Unimaze has over 20 years of experience carrying out various EDI, e-invoicing, and other international document exchange projects. We have successfully connected thousands of businesses globally during this time.
  7. Our extensive experience and successful track record demonstrate our ability to provide effective EDI, e-invoicing, and document exchange solutions to businesses worldwide.

What Does All This Mean for Your Business?

You'll Achieve Legal Compliance

Partnering with Unimaze will ensure you fully comply with Luxembourg's data regulation and transfer standards.

You'll Digitize Your Business

Unimaze's innovative e-solutions will allow your business to leverage digitization’s benefits, including streamlining and automating AP procedures.

You’ll Enjoy Massive Savings

Shunning paper-based invoicing for e-invoices can save your business hundreds of dollars annually. Use our e-invoicing benefits calculator to see how much you could be saving.

Ready to Streamline Your Invoicing Process and Take Your Business to the Next Level?

Contact Unimaze today to learn more about our customizable and secure e-invoicing solutions and how we can help your business achieve its goals.

Electronic Invoicing in Luxembourg - FAQs

What Is the Required Format for an e-Invoice in Luxembourg?

In Luxembourg, e-invoices must comply with the European Norm (EN) 16931.

The EN 16931 standard specifies that e-invoices must be in a structured electronic format, such as XML or UBL, and must contain certain mandatory information, including:

  • The invoice date and a unique invoice number
  • The name and address of the supplier and the buyer
  • The quantity and description of the goods or services provided
  • The unit price and total amount, including any taxes or discounts
  • The VAT identification number of the supplier and buyer
  • The payment terms and method of payment

Is E-Invoicing Mandatory in Luxembourg?

While B2B e-invoicing isn’t mandatory in Luxembourg, large Luxembourgian companies are obliged to send e-invoices to public authorities.

This marks a significant step towards the wider adoption of electronic invoicing in Luxembourg and reflects the government's commitment to modernizing its administrative procedures.

Who is Liable to Send E-Invoices in Luxembourg?

Currently, large Luxembourgian companies with more than 250 employees or an annual turnover of more than €50 million are required to submit their invoices to public authorities in electronic format, using the European Norm (EN) 16931 standard.

This requirement applies to invoices for all public contracts and invoices for any other services or goods provided to public authorities.

This requirement has been extended to small and new businesses since March 2023.

While B2B e-invoicing is not currently mandatory for businesses in the private sector, many companies are voluntarily adopting electronic invoicing due to the many advantages it offers, such as reducing costs, streamlining processes, and improving accuracy and efficiency. It is becoming increasingly common for businesses of all sizes to send and receive e-invoices in Luxembourg.

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