Peppol
4 min

Understanding the Mandate of Peppol in Luxembourg

Luxembourg is ushering in a new era with a focus on e-invoicing. E-invoicing is especially important for business and government transactions, also known as B2G transactions.
luxembourg e-invoice
Written by
Steve Martin
Published on
September 6, 2023

Kickstarting a New Era: The Mandate of B2G E-Invoicing in Luxembourg

A new regulation came out in December 2021 that aims to make life easier for businesses. The idea is straightforward: make it simpler for companies to handle their value-added tax (VAT) and improve their cash flow. So, we're looking at more than just a new rule.

But it's not just about new rules. This change also signifies an innovative approach to how businesses and the government collaborate. The ultimate goal? To create a system that benefits everyone involved and improves business processes.

Key Implementation Dates: Navigating Compliance Timelines and Obligations

When it comes to Peppol in Luxembourg, timing is everything. But don't worry; the government has set up a schedule that gives businesses time to get on board. Let's look at when different types of businesses—called 'economic operators'—need to comply.

Large Economic Operators

If you're part of a large business, mark your May 18, 2022, calendar. From that date, you must issue all invoices to public-sector bodies digitally. The government expects large businesses with more resources to adjust faster to this change.

Medium-sized Economic Operators

Medium-sized businesses have a bit more time. Your deadline for switching to e-invoicing is October 18, 2022. The extra months help you get your systems and processes in line without rushing.

Small and Newly Established Economic Operators

Smaller or newly founded companies can switch until March 18, 2023. This extra time recognises smaller businesses' challenges in adopting new technologies and processes.

Depending on your business size, you have a specific deadline to meet. It's all part of Luxembourg's plan to make the transition to e-invoicing smooth and manageable for everyone involved.

How Will B2G E-Invoicing Work in Luxembourg?

Getting to grips with Business-to-Government (B2G) e-invoicing in Luxembourg is simpler than you might think. You'll first need to register with an access point provider to send peppol invoices. This access point will route your invoices through the Peppol network to the correct government body.

Supply Lens is a certified access point provider. We can help you convert your invoices to the correct formats and connect you to the Peppol network.

Peppol Access Point: The Gateway

Registering with an access point like Supply Lens gives you the entryway you need into the Peppol network. Access points are crucial for e-invoicing. They ensure a secure and smooth exchange of invoice data between businesses and government agencies.

The Four Corner Model: A Seamless Process

Luxembourg bases its system on the Four Corner Model. In this setup, the invoice sender and receiver have access points. These access points ensure correct routing and delivery by communicating with each other. The design aims for efficiency and unified Peppol transactions, streamlining your invoicing process.

Understanding and using an established framework like this puts you in good stead for successful B2G e-invoicing in Luxembourg. How does this section suit your needs? Would you like to add more information?

Understanding the Platform and Requirements You'll Need for E-Invoicing

Let's move to the finer details of e-invoicing. Knowing the formats, network capabilities, and archiving requirements is essential.

Invoice Formats: Know as Peppol standards, UBL 2.1 or Peppol BIS 3.0 Billing

For e-invoices, you have two format options: UBL 2.1 and Peppol BIS 3.0 Billing. Both Luxembourg and the EU approve these formats for seamless processing and compliance.

Network: Two-Way Communication

The Peppol network enables automatic two-way communication. Once you establish an access point on the network, you can send and receive invoices. The term 'interoperable network' refers to a design that allows easy interaction among all participants.

Archiving: A 10-Year Requirement

Archiving is a crucial aspect of e-invoicing. Luxembourg law requires archiving each e-invoice for ten years. You must archive long-term to comply with legal and taxation requirements.

Wrapping It Up: E-Invoicing in Luxembourg, A Recap and Next Steps

We've covered much ground, so let's take a moment to revisit the key points. All businesses involved in B2G transactions in Luxembourg must now use e-invoicing, regardless of their size. From compliance timelines to the technical nitty-gritty, being well-prepared for this shift is crucial.

Making the Transition Easier

The first step in this journey is registering with an Access Point (AP) provider to send your e-invoices.

Supply Lens can format your invoices and send them to the proper government agencies through the Peppol network.

Check out our pricing options to see what best suits your needs.

Ready to Take the Next Step?

Change is inevitable, but it doesn't have to be complicated. Our e-invoicing expert, Steve Martin, is here to guide you every step of the way.

If you have questions or need a demo, you can reach Steve by email or phone.

For a more in-depth understanding and to schedule a demo, please get in touch with us at hello@peppol101.com.

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