What if I'm not ready for e-invoicing?

1. Substance over form

The Court of Justice of the European Union has confirmed the principle of “substance over form” in several rulings, particularly regarding VAT and invoicing requirements (see e.g., CJEU Cases C-80/11 and C-142/11). This means that the economic and commercial reality of a transaction is more important than the formal details on an invoice.

So even though e-invoicing becomes mandatory, the main focus remains on the actual transaction. As long as goods or services have been delivered and VAT is correctly processed, the invoice is essentially ‘valid’. In other words, a paper invoice or technical hiccup does not automatically cancel your right to deduct VAT. The good news?

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2. But: penalties do apply

Still unable to make the switch in time? Be aware that penalties are in place. The sanction mechanism is similar to that used for Registered Cash Register Systems (RCRS, also known as the “white cash register”).

Violations result in tax fines, with amounts increasing based on the severity and repeated nature of the offense:

• €1,500 for the first offense
• €3,000 for the second offense
• €5,000 for every subsequent offense

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There is a three-month interval between consecutive fines. So yes, you do get a brief grace period after your first mistake, but repeated non-compliance leads to mounting penalties.

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3. Traditional invoice penalties still apply

Even without e-invoicing, fines can be issued for mistakes on invoices, such as missing mandatory elements (like VAT number, invoice date, or total amount). These fines range from €50 to €5,000 depending on the severity of the error and how frequently it occurs.

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4. What can you do now?

Mark the deadline in your calendar:  January 1, 2026 will be here sooner than you think.

Check your current invoicing system: Does it support e-invoices? Consider compatibility with Peppol/UBL standards or required integration modules.

Train your team: Everyone should understand how e-invoicing works and why it matters

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