SME Packages Digital: Up to 70% Subsidy for Your Electronic Invoicing

A Government Programme to Accelerate SME Digitalisation

Luxembourg does not just impose electronic invoicing for public procurement: it actively supports businesses in their digital transformation. The SME Packages Digital programme, managed by the Ministry of the Economy, offers concrete financial support to small and medium-sized enterprises wishing to digitalise their processes, including electronic invoicing.

This programme represents an exceptional opportunity for SMEs in the Grand Duchy to equip themselves with Peppol electronic invoicing solutions at a reduced cost. With a subsidy covering up to 70% of eligible expenses, the financial barrier to Peppol adoption is considerably reduced.

What Is the SME Packages Digital Programme?

The SME Packages Digital programme is part of the national digitalisation strategy. It aims to support SMEs in their adoption of digital tools and solutions to improve their competitiveness and operational efficiency.

The programme covers three areas of digital transformation:

• Digital marketing: website creation or improvement, social media campaigns
• Management systems: cash registers, business software, ERP solutions
• Electronic invoicing: ERP systems with integrated electronic invoicing modules

The project cost must be between 3,000 EUR and 25,000 EUR excluding VAT.

Eligibility Conditions

To benefit from the SME Packages Digital programme, your business must meet certain conditions:

• Hold an establishment authorisation from the Ministry of the Economy
• Meet the SME criteria in terms of employees, turnover and balance sheet
• Have your registered office in Luxembourg

The Subsidy Amount: Up to 70% Coverage

The financial aid granted by the SME Packages Digital programme is particularly generous:

• Subsidy rate: up to 70% of eligible costs
• Investment range: from 3,000 EUR to 25,000 EUR excluding VAT
• Reimbursement: the business pays the final invoice first, then is reimbursed by the Ministry after implementation

How to Submit an Application

The application process takes place in several steps:

1. Mandatory pre-analysis: make an appointment with the House of Entrepreneurship (Chamber of Commerce) or eHandwierk (Chamber of Crafts, for artisans) for a diagnosis of your needs
2. Package definition: define your project and select a provider
3. File preparation: prepare your application with the help of the support organisation
4. Ministry validation: the Ministry of the Economy examines and validates your application
5. Implementation: the provider implements the solution
6. Final evaluation: a review is conducted at the end of the project
7. Reimbursement: the business pays the final invoice, then is reimbursed by the Ministry

Important: the project must not have started before the aid application is submitted.

Electronic Invoicing: An Ideal Use Case

Electronic invoicing is one of the most relevant use cases for the SME Packages Digital programme. Here is why:

• Legal obligation: B2G electronic invoicing is already mandatory, which fully justifies the investment
• Quick return on investment: savings on invoice processing quickly offset the residual cost after subsidy
• Cross-cutting impact: invoicing digitalisation benefits the entire business (accounting, management, treasury)
• Future preparation: with a probable extension of the obligation to B2B, investing now prepares for the future

The programme explicitly covers ERP systems with electronic invoicing modules. Projects related to invoicing digitalisation and administrative automation can fall within the scope, subject to validation during the pre-analysis.

Check with the House of Entrepreneurship or eHandwierk to verify the eligibility of your specific project.

Support Organisations

Two organisations are authorised to conduct the mandatory pre-analysis and support you in your application:

• House of Entrepreneurship (Chamber of Commerce): for non-artisan businesses
• eHandwierk (Chamber of Crafts): for artisan businesses

The Ministry of the Economy ensures final validation and programme funding.

Practical Tips to Maximise Your Subsidy

1. Anticipate: submit your application as soon as possible, before starting your project
2. Document: keep all quotes, invoices and supporting documents related to your project
3. Choose your provider carefully: opt for a Peppol provider who knows the programme and can support you in the process
4. Think global: if you are digitalising your invoicing, take the opportunity to include other aspects of your digital transformation in the application

For an SME, the interest is not just regulatory: a simple invoicing software with integrated Peppol can also reduce manual entry, accelerate sending and improve collaboration with the accountant.