Electronic Invoice in Luxembourg

In Luxembourg, the legal framework for electronic invoicing is a combination of EU directives and national legislation. Luxembourg has incorporated the relevant EU directives on electronic invoicing into its national laws and established specific provisions for electronic invoicing. The main legal foundations for electronic invoicing in Luxembourg are:

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1. EU VAT Directive (2006/112/EC)

The EU VAT Directive (2006/112/EC) provides the fundamental legal basis for electronic invoicing in all EU member states, including Luxembourg. Key provisions of this directive include:

• Article 232 allows member states to recognize electronic invoices, provided the authenticity of origin and integrity of content are ensured.
• These requirements can be fulfilled through methods such as electronic signatures, EDI (Electronic Data Interchange), or other technologies that ensure data security and immutability.

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2. Luxembourg VAT Act (Loi sur la taxe sur la valeur ajoutée)

The Luxembourg VAT Act governs the tax requirements for electronic invoicing. It implements EU provisions and stipulates that electronic invoices are equivalent to paper invoices if the requirements for authenticity and integrity are met:

• Electronic invoices must include the same tax-relevant information as paper invoices, such as:
  • Invoice number,
  • Name and address of the issuer and recipient,
  • Description of goods or services,
  • Amount and VAT,
  • Invoice date.

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3. Regulation on Electronic Invoicing in the Public Sector

Luxembourg has implemented the EU Directive 2014/55/EU on electronic invoicing in the public sector. This mandates businesses issuing invoices to public institutions to submit them electronically:

• As of November 18, 2020, all suppliers to the public sector in Luxembourg must submit electronic invoices in compliance with EU standards.
• Invoices must be in a structured format (e.g., XML or UBL) to enable machine readability and automated processing.
• The Luxembourg government has introduced a national platform for submitting invoices to public entities.

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4. Electronic Signatures and Their Importance

In Luxembourg, electronic signatures can be used to ensure the authenticity and integrity of electronic invoices. The EU eIDAS Regulation provides the basis for the use of electronic signatures:

• Qualified Electronic Signatures (QES): These carry the same legal weight as handwritten signatures and are recommended for invoice verification.
• Advanced Electronic Signatures (AES): These are also acceptable, provided they ensure proper authentication.

Electronic signatures ensure that the invoice issuer can be uniquely identified and that the invoice content remains unchanged after issuance.

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5. Archiving Electronic Invoices

The archiving obligations for electronic invoices in Luxembourg align with general EU requirements. Businesses must retain their electronic invoices for a minimum of 10 years:

• Invoices must remain readable throughout the retention period.
• Authenticity and integrity of the invoices must be preserved.
• Invoices must be securely stored and accessible for tax audits at any time.

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6. Peppol and the Luxembourg eInvoicing Platform

Luxembourg has adopted the Peppol Standard (Pan-European Public Procurement Online) for electronic invoicing in the public sector:

• The Peppol Standard facilitates the secure and structured exchange of invoices between businesses and public institutions across Europe.
• The national platform in Luxembourg supports the submission of Peppol-compliant invoices, reducing administrative costs and improving efficiency.

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7. Other Relevant Regulations

• Law on Electronic Communication: Regulates the legal framework for using electronic communication tools, including electronic invoicing and electronic signatures.
• Tax Authorities: Luxembourg’s tax administration has issued guidelines for businesses to comply with electronic invoicing requirements.

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Summary of Legal Foundations in Luxembourg:

1. EU VAT Directive (2006/112/EC): Establishes the basis for recognizing electronic invoices if authenticity and integrity are ensured.
2. Luxembourg VAT Act: Requires electronic invoices to meet the same standards as paper invoices.
3. Regulation on Electronic Invoicing in the Public Sector: Mandates electronic invoicing for transactions with public institutions.
4. Electronic Signatures: Can be used to ensure the authenticity and integrity of invoices.
5. Archiving Obligation: Electronic invoices must be retained for at least 10 years.
6. Peppol Standard: Required for electronic invoicing in the public sector.

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Conclusion:

In Luxembourg, electronic invoicing is fully recognized in both the private and public sectors. The EU VAT Directive and the Luxembourg VAT Act form the basis for the use of electronic invoices. For businesses working with public institutions, the use of the Peppol Standard and compliance with archiving obligations are essential. Electronic signatures are recommended to ensure the authenticity and integrity of invoices.