e-Invoicing in Luxembourg: Timeline, Guidelines, Process, and Steps for Implementation

Luxembourg has taken a clear step towards digitalising public procurement through the implementation of e-invoicing. Since May 2022, e-invoicing has become mandatory for all suppliers, large, medium, and small, when issuing invoices to public sector bodies. The process is based on structured formats, with Peppol BIS 3.0 being the recommended standard for cross-border compatibility. The Ministry for Digitalisation leads the initiative, with the CTIE handling technical operations. While B2G e-invoicing is fully enforced, there is currently no mandate for B2B e-invoicing in Luxembourg. To help businesses stay compliant with e-invoices in Luxembourg and avoid delays in payments, this guide outlines the key timeline, e-invoice guidelines, and the steps needed for the smooth implementation of e-invoicing in Luxembourg.

What is e-Invoicing in Luxembourg?

Luxembourg e-invoicing applies mainly to public procurement. Since 2019, suppliers have been required to send electronic invoices to public bodies using the Peppol eDelivery Network, in formats like Peppol BIS Billing 3.0 (UBL or UN/CEFACT CII). Public institutions receive these invoices via access points managed by CTIE or SIGI. Businesses can either automate their invoicing through Peppol-certified ERP systems or use web forms on Guichet.lu for manual entry or file upload. The obligation to send e-invoices was phased in, with deadlines between 2022 and 2023 based on company size. While B2B e-invoicing is allowed with buyer consent, it’s not mandatory. 

e-Invoice Implementation Timeline

The e-invoicing implementation in Luxembourg follows a well-structured timeline, ensuring smooth adoption across various sectors.

e-Invoicing Process in Luxembourg

Luxembourg has introduced e-invoicing for public sector transactions, making it mandatory for all government bodies to receive and process electronic invoices. Here's how it works:

1. Creating e-Invoices: To start, businesses need to create e-invoices using invoicing or accounting software that supports Peppol BIS Billing 3.0. These invoices should meet European standards (EN 16931-1:2017) and be formatted in XML UBL or UN/CEFACT CII.
2. Sending e-Invoices: Once the invoice is ready, it’s sent through the Peppol network, either directly or via a third-party provider. This network is a key part of Luxembourg’s e-invoicing system.
3. Receiving e-Invoices: Public sector bodies in Luxembourg must accept e-invoices via Peppol. Most use the access point run by the Government IT Centre (CTIE), though some local authorities may use alternatives like SIGI.
4. Manual Submission for Non-Automated Users: For businesses that can’t use automated systems, there are two options available on the Guichet.lu portal: manually entering invoice details or uploading a pre-prepared e-invoice.
5. Processing e-Invoices: Once the public sector receives an invoice, it’s processed via the relevant access point and automatically converted into the Peppol BIS Billing 3.0 XML format for compliance.
6. Ensuring Compliance: The Ministry for Digitalisation and CTIE ensure businesses follow the rules. Monitoring tools track the number of e-invoices sent and received, with Peppol reporting set to begin in 2024.
7. Using Peppol Access Points: To take part in the e-invoicing process, businesses must connect to Peppol. They can either set up their own access point or rent one from a third-party provider. Many ERP systems already integrate Peppol connectivity.
8. Digital Reporting: Currently, Luxembourg doesn’t use e-invoicing for VAT reporting. However, tax authorities can request accounting data, typically in SAF-T (Standard Audit File for Tax) format, during audits.

e-Invoicing Compliance Guidelines

Luxembourg businesses have to adhere to these essential e-invoicing guidelines to maintain government compliance.

• Signature: Digital signatures aren’t required for B2G invoices, but methods like Advanced Electronic Signature ensure authenticity.
• Archiving: e-Invoices must be stored for 10 years.
• Accuracy: Ensure data follows the European standard (EN 16931-1:2017).
• Peppol Transmission: Use the Peppol network for secure invoice submission.

Who Needs to Comply with e-Invoicing in Luxembourg?

In Luxembourg, all public sector bodies are required to receive and process e-invoices. Economic operators, both national and foreign, must send compliant e-invoices for public procurement and concession contracts.

Benefits of e-Invoicing in Luxembourg

E-invoicing offers several practical advantages for businesses in Luxembourg:

• Streamlined processing and reduced manual errors.
• Faster invoice approval and payment cycles.
• Enhanced compliance with government regulations.
• Cost savings on paper, printing, and postage.
• Improved tracking and auditability of invoices.

How can ClearTax help a business with e-Invoicing in Luxembourg?

ClearTax helps businesses in Luxembourg simplify e-invoicing with a comprehensive solution:

1. Effortless ERP & POS Integration: Automatically generates and sends invoices in the required formats, ensuring compliance with Luxembourg’s e-invoicing standards.
2. Real-Time Validation: Confirms that invoices meet Luxembourg’s VAT rules for smooth, accurate submissions.
3. Cloud-Based Storage: Securely stores e-invoices for the required 10-year retention period, making access easy.
4. Compliance Monitoring & Alerts: Minimizes errors and helps meet deadlines, keeping your business fully compliant with Luxembourg’s e-invoicing regulations.

Conclusion

In Luxembourg, businesses must follow a defined e-invoicing process, creating invoices in formats like Peppol BIS 3.0, and transmitting them through approved networks. Compliance requires following strict guidelines on invoice validation, secure storage for 10 years, and submission rules, especially for B2G transactions. ClearTax offers a reliable solution to streamline the process by integrating with existing systems, ensuring invoices meet local VAT regulations, and providing secure cloud storage. For seamless e-invoicing compliance in Luxembourg, get in touch with ClearTax and simplify your business processes today!