Is e-invoicing mandatory for small businesses exempt from VAT?

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You might have already heard the buzz: starting in 2026, sending e-invoices through PEPPOL will be mandatory for all VAT-registered self-employed in Belgium.

And yes, that means the rule also applies to you. Whether you’re running a side hustle (bijberoep/une activité complémentaire) or a small business that benefits from the VAT exemption.

PEPPOL e-invoicing: who, what, where, when?

Electronic invoices are invoices sent in a specific format between businesses (B2B) through a secure network (PEPPOL).

To be able to send and receive e-invoices, you need to register on the PEPPOL network. Luckily, with Accountable, that’s super easy.

This requirement kicks in on January 1, 2026 for all VAT-registered businesses. That includes:

• sole proprietors
• companies
• self-employed individuals with a side hustle (bijberoep/une activité complémentaire)
• small businesses exempt from VAT (annual revenue < €25,000)
• student entrepreneurs

An example:

✅ James is an IT consultant running a side business, mostly working with large companies (B2B). His yearly revenue from this side hustle is €15,000, so he applied for the VAT exemption. However, by law, James is still considered VAT-liable and invoices other businesses. This means he’ll have to send e-invoices starting in 2026.

✅ Amelia is a beautician with a side hustle who only serves private clients (B2C). She doesn’t issue invoices for her treatments. Still, Amelia needs to follow the e-invoicing rules in order to receive invoices from her suppliers (B2B).

E-invoicing and VAT exemption

Did you opt for the VAT exemption for small businesses (because you earn less than €25,000 per year)

Even then, you’re technically still considered VAT-liable. That means the mandatory e-invoicing rules apply to you as well.

A small business that is exempt from VAT because its annual revenue is under €25,000 is still considered VAT-liable. Don’t confuse this with being non-VAT-liable due to the nature of the profession (Article 44: dentists, psychologists, general practitioners, etc.).

E-invoicing for freelancers with a side hustle

Self-employed individuals running a side business have the same e-invoicing obligations as full-time sole traders or companies.

Starting in 2026, every VAT-liable business in Belgium (including those who opted for the VAT exemption or are running a side hustle) will be required to send e-invoices for transactions between businesses.

Invoicing non-Belgian companies? Then you don’t need to send e-invoices… at least not yet.
Read more about e-invoicing and clients within the EU here.

Summary

From 2026, the new e-invoicing rules apply to:

• All VAT-liable Belgian businesses (including small businesses exempt from VAT) who invoice other Belgian companies (B2B).
• Even if you only work with private clients (B2C) and don’t issue invoices for them, you still need to be PEPPOL-compliant to receive e-invoices from suppliers.
• This applies to everyone who falls under the first rule, including side-business freelancers, student entrepreneurs, sole proprietors, companies, and more.

Liberal professions like dentists, doctors, psychologists, etc., are not VAT-liable and don’t need to send e-invoices. Read more about e-invoicing for these professions here.

Author - Alexis Eggermont

Alexis is co-founder at Accountable. He is passionate about leveraging data, AI, technology, and entrepreneurship.

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