Peppol Mandatory for Public Procurement in Luxembourg: What Every Supplier Must Know

The B2G E-Invoicing Mandate Explained

Luxembourg has taken a decisive step toward modernising its public procurement processes. Since March 2023, every business that invoices the public sector is required to submit electronic invoices. This applies to all company sizes, from freelancers and micro-enterprises to multinational corporations operating in the Grand Duchy.

The mandate originates from the European Directive 2014/55/EU, which requires all EU member states to accept and process electronic invoices in public procurement. The country went further by making e-invoicing obligatory for suppliers, not just for public bodies to accept.

This means that if you supply goods, services, or works to any government entity, municipality, or public institution here, you must transmit your invoices electronically through one of the two authorised channels: Peppol or MyGuichet.lu.

Who Is Affected?

The scope of the mandate is broad and covers all economic operators that participate in public procurement locally. Specifically, the following entities must comply:

• Sole traders and freelancers providing services to government departments
• SMEs supplying goods or services to municipalities and communes
• Large enterprises with public sector contracts
• Foreign companies, including Belgian, German, and French businesses with public sector clients in the country

There are no exemptions based on company size, turnover, or sector. If you invoice a public entity, you must do so electronically.

The Two Authorised Channels

The government recognises only two channels for submitting e-invoices to the public sector:

1. The Peppol Network

Peppol (Pan-European Public Procurement Online) is the international standard for electronic document exchange. Through a Peppol access point, your invoices are transmitted in structured format directly to the recipient's system. This enables full automation, from invoice creation to payment processing.

Peppol is the preferred choice for businesses that want to automate their invoicing, handle high volumes, or trade across borders. It is also the channel that supports both B2G and B2B invoicing, making it a future-proof investment.

2. MyGuichet.lu

MyGuichet.lu is the national e-government platform operated by Guichet.lu. It offers a web-based interface where businesses can manually upload or create e-invoices for submission to public entities. While functional for occasional invoicing, it is less suited for businesses with high invoice volumes or those seeking automated workflows.

Both channels produce invoices compliant with the EN 16931 European standard, ensuring they are accepted by all public sector recipients.

What Happens If You Do Not Comply?

Non-compliance with the B2G e-invoicing mandate has practical consequences. Public entities are increasingly configured to only accept electronic invoices through the authorised channels. This means:

• Paper invoices may be rejected or returned without processing
• PDF invoices sent by email will not be accepted as compliant
• Payment processing may be delayed or blocked entirely
• Your business could lose eligibility for future public tenders

Given that the government is known for reliable and timely payments, ensuring your invoices reach them in the correct format is essential for maintaining healthy cash flow.

Cross-Border Implications

The Grand Duchy's economy is deeply interconnected with its neighbours, particularly Belgium, Germany, and France. Many businesses from these countries supply goods and services to the local public sector, and they too must comply with the e-invoicing mandate.

For Belgian companies, this is especially relevant given that Belgium is introducing its own B2B e-invoicing obligation in 2026. Businesses already connected to Peppol for their Belgian operations can seamlessly extend their setup to cover public procurement here, creating a unified invoicing process across both countries.

Similarly, German and French businesses already familiar with e-invoicing standards like ZUGFeRD or Factur-X will find that Peppol provides a standardised bridge to the local market.

How to Get Started with Peppol

Getting connected to the Peppol network is straightforward. Here is a step-by-step guide:

1. Choose a Peppol access point — select a certified provider like Peppol Box that supports businesses operating in the Grand Duchy
2. Register your business — provide your business number and VAT details
3. Obtain your Peppol ID — receive your unique Peppol participant identifier
4. Configure your setup — connect your existing accounting solution or use the provider's online platform. With Flexina Sync, your accountant can automatically retrieve your invoices from Peppol Box — free of charge
5. Send your first e-invoice — test with a public sector recipient to confirm everything works

With a provider like Peppol Box, the entire process can be completed in minutes, with no technical expertise required. You can start sending compliant e-invoices to the public sector immediately.

Financial Support Available

The government recognises that transitioning to e-invoicing involves costs, especially for smaller businesses. Through the SME Packages Digital programme, eligible businesses can receive subsidies covering up to 70% of the costs associated with digitalisation projects, including e-invoicing implementation.

The Chamber of Commerce and the Ministry of Digitalisation can provide further information on eligibility criteria and application procedures.