Belgium is taking another significant step in the digitalisation of its VAT system. The Belgian Council of Ministers has approved a draft law introducing near real-time electronic reporting of invoice data, building on the country’s mandatory B2B e-invoicing framework that came into force on 1 January 2026.
If adopted, the legislation would move Belgium closer to a full Continuous Transaction Controls (CTC) model by requiring businesses to electronically transmit key invoice information to the tax administration shortly after invoices are issued and received.
Belgium Advances Its Digital VAT Strategy
The proposed electronic reporting regime is designed to complement, rather than replace, mandatory structured B2B e-invoicing. Together, these measures aim to provide the Belgian tax administration with faster and more accurate access to transactional data while reducing opportunities for VAT fraud.
The initiative reflects a broader shift across Europe towards digital VAT compliance, where tax authorities increasingly rely on automated invoice data instead of periodic reporting.
Key Features of the Proposal
Under the draft legislation:
- Suppliers and customers would both electronically report key invoice data.
- Invoice information would be transmitted in near real time to the Belgian tax administration.
- Tax authorities would receive faster access to transactional data to improve VAT risk analysis and fraud detection.
- Automated reporting is expected to enhance the accuracy and reliability of VAT information.
- Businesses subject to the new reporting obligation would no longer be required to submit the annual VAT customer listing.
The proposal seeks to streamline VAT administration while improving compliance through more timely and standardised reporting.
Legislative Process Continues
The draft law is not yet final. Before it can proceed further, it will be reviewed by the Belgian Data Protection Authority and the Council of State, both of which will provide opinions on the proposed legislation.
Following these reviews, the bill is expected to continue through Belgium’s legislative process before becoming law.
Part of a Wider European CTC Trend
Belgium joins a growing number of jurisdictions implementing Continuous Transaction Controls (CTCs) to modernise VAT collection and reduce the VAT gap.
Across Europe, governments are increasingly combining mandatory e-invoicing with electronic transaction reporting to provide tax administrations with near real-time visibility of commercial transactions. This trend is expected to continue as countries prepare for future digital VAT initiatives and align their domestic systems with broader European digitalisation efforts.
For businesses operating internationally, the continued expansion of CTC regimes reinforces the importance of investing in scalable e-invoicing and tax technology solutions capable of supporting evolving compliance requirements.