New Belgian Royal Decree clarifies VAT recovery right in the context of mandatory e invoicing

Historically in Belgium, a taxable person was entitled to recover input VAT if it held an invoice issued in accordance with the Belgian VAT Code and containing the mandatory mentions referred to in VAT Royal Decree no. 1.  

Given that the Belgian VAT Code referred to the possession of an invoice issued in accordance with the applicable provisions, without explicitly addressing structured e-invoices, uncertainty arose as to whether the right to recover input VAT could be denied where no structured e-invoice had been issued in the context of the new mandatory e-invoicing regime which entered into force on 1 January 2026 (see here).

The new Royal Decree now provides, on the one hand, that for transactions subject to the structured e-invoicing obligation, the customer must in principle be in possession of a structured e-invoice in order to exercise its right to recover input VAT. At the same time, the issuance of a PDF or paper invoice to the customer cannot exclude the latter's VAT recovery right solely on that basis.

Thus, although administrative penalties may apply for non-compliance with the obligation to be technically capable of receiving structured e-invoices, the substantive right to recover input VAT remains safeguarded, provided that an invoice has been received containing all legally required information (eg in PDF or paper form).  

This approach is fully consistent with the European “substance over form” principle, according to which purely formal deficiencies cannot undermine the right to input VAT recovery where the material conditions are satisfied.

Key takeaway

The Royal Decree provides welcome legal certainty by confirming that non-compliance by suppliers with the structured e-invoicing obligation does not automatically jeopardize the right to recover input VAT for their customers.

Businesses should nevertheless ensure that their systems are adapted to the mandatory e-invoicing framework, as failure to comply may trigger administrative penalties. In addition, taxable persons should verify that incoming invoices contain all mandatory details in order to safeguard their VAT deduction right.