Luxembourg introduces e-invoicing for business to government transactions

1 February 2022

Luxembourg has recently introduced a new law that makes it compulsory for businesses selling to the public sector (government) to issue electronic invoices.

This new law will allow businesses that sell to government departments in the country to declare their sales to the Luxembourg tax authorities via a new e-invoicing platform, instead of sending invoices directly to their customers. The Luxembourg tax authorities will then verify these invoices and send them to the relevant government department to prevent fraud and speed up payment times for suppliers.

The new electronic invoicing rules will be introduced in a phased approach beginning with large entities from April 2022. 

Luxembourg has not provided any further clarification as to whether this will be introduced for other types of supplies, for instance business to business transactions, in the future.