E-Invoicing in Luxembourg: A Complete Overview for Businesses

The State of E-Invoicing in Luxembourg

Luxembourg has positioned itself as one of Europe's frontrunners in digital transformation, and electronic invoicing is a key pillar of this strategy. Under the leadership of the Ministry of Digitalisation, the Grand Duchy has been steadily building a modern, paperless framework for business transactions with public authorities and beyond.

Since March 2023, all businesses supplying goods or services to the public sector here are required to submit their invoices electronically. This Business-to-Government (B2G) mandate applies to companies of all sizes, from sole traders to large corporations, making the country one of the most comprehensive adopters of e-invoicing obligations in Europe.

While the Business-to-Business (B2B) sector does not yet have a mandatory e-invoicing requirement, the direction of travel is clear. The government is actively encouraging voluntary adoption, and developments in neighbouring countries, particularly Belgium's upcoming 2026 obligation, are accelerating the trend across the region.

What Is Electronic Invoicing?

Electronic invoicing, or e-invoicing, goes far beyond simply sending a PDF by email. A true electronic invoice is a structured digital document that can be automatically read, processed, and integrated into accounting systems without manual data entry.

Locally, e-invoices must conform to the European standard EN 16931, which ensures interoperability across EU member states. The two authorised channels for submitting e-invoices to the public sector are:

• Peppol — the Pan-European Public Procurement Online network
• MyGuichet.lu — the national e-government portal managed by Guichet.lu

Both channels allow businesses to transmit invoices in the required UBL or CII format, though they differ significantly in terms of automation capabilities, scalability, and integration options.

The B2G Mandate: What You Need to Know

The B2G e-invoicing obligation stems from the transposition of the European Directive 2014/55/EU. Since March 2023, all invoices addressed to public entities must be submitted electronically. Paper invoices and simple PDF attachments are no longer accepted.

This obligation covers a wide range of public sector transactions, including:

• Government ministries and departments
• Municipal and communal administrations
• Public establishments and agencies
• State-funded institutions and organisations

Businesses that fail to comply risk delays in payment processing, as public entities are not obligated to process non-compliant invoices. Given that the government is known for its prompt payment practices, ensuring compliance is in every supplier's interest.

The B2B Landscape: Voluntary but Growing

Unlike the B2G sector, there is currently no mandatory requirement for B2B e-invoicing in the country, and no official date has been announced by the government. However, several factors are driving voluntary adoption among local businesses:

• Efficiency gains — automated invoice processing reduces errors and speeds up payment cycles
• Cost savings — eliminating paper, postage, and manual data entry lowers operational costs
• Cross-border pressure — Belgium's 2026 B2B e-invoicing mandate will affect domestic companies trading with Belgian partners
• Government incentives — the SME Packages Digital programme offers up to 70% subsidies for digitalisation projects

Forward-thinking businesses are already adopting Peppol for their B2B transactions, recognising that early adoption provides a competitive advantage and smoother transition when regulations eventually expand.

Key Institutions and Resources

Several institutions play important roles in the local e-invoicing ecosystem:

• Ministry of Digitalisation — sets the strategic direction and policy framework for digital government services
• Guichet.lu — operates the MyGuichet.lu platform and provides practical guidance for businesses
• Chamber of Commerce (Chambre de Commerce) — offers training, workshops, and advisory services on digitalisation
• Administration des Contributions Directes (ACD) — oversees tax compliance and the integration of e-invoicing with tax reporting

These organisations provide extensive documentation, help desks, and support services to assist businesses in their transition to electronic invoicing.

Why Peppol Is the Preferred Choice

While both Peppol and MyGuichet.lu are authorised channels, the Peppol network offers significant advantages for businesses looking to scale their e-invoicing capabilities. Peppol enables fully automated invoice exchange, supports both B2G and B2B transactions, and connects you to a network of over 300,000 organisations across Europe.

With a Peppol access point like Peppol Box, local businesses can send and receive e-invoices seamlessly, whether dealing with the government, Belgian clients subject to the 2026 obligation, or any other Peppol-connected partner across the EU. With Flexina Sync, your accountant can automatically retrieve your invoices from Peppol Box — free of charge and with no effort on your part.

Preparing Your Business for the Future

The transition to e-invoicing is not a matter of if but when. Businesses here should consider taking the following steps now:

1. Assess your current invoicing processes and identify areas for improvement
2. Register on the Peppol network through a certified access point
3. Explore the SME Packages Digital programme for financial support
4. Train your team on the new processes and tools
5. Test your setup with a few transactions before going fully digital

By acting proactively, you can avoid last-minute scrambles, benefit from government subsidies while they are available, and position your business as a modern, efficient partner in the Grand Duchy's digital economy.