E-invoicing for non-profits and NPOs: what are the rules?
Non-profit organisations (vzw/asbl in Belgian terms) form a special category. They are not always subject to VAT, but that does not automatically mean they have nothing to do with e-invoicing. Here is the situation explained.
Are non-profits required to send e-invoices?
That depends on whether the organisation carries out VAT-liable activities.
Non-profits without VAT activities: A non-profit that exclusively carries out activities exempt from VAT — such as certain social, cultural or educational activities — is in principle not VAT-liable and does not fall under the e-invoicing obligation for sending invoices.
Non-profits with VAT activities: A non-profit that (also) carries out VAT-liable activities and issues invoices to other VAT-registered businesses for those activities must send those invoices via Peppol. The legal form (non-profit or company) makes no difference for the e-invoicing obligation — what matters is the VAT status.
Non-profits as receivers: Non-profits that make purchases from VAT-registered suppliers will increasingly receive e-invoices. It is sensible for non-profits to be able to handle incoming e-invoices, even if they are not required to send them themselves.
What about invoices to government bodies?
For invoices to Belgian government institutions, the e-invoicing obligation has applied since 1 March 2024 for contracts exceeding €3,000 excl. VAT. Non-profits that regularly invoice municipalities, public welfare centres, schools or other government bodies have therefore been required to invoice electronically for some time already.
Practical advice for non-profits
If your non-profit is uncertain about its own VAT status, it is advisable to discuss this with an accountant or tax adviser. The boundary between VAT-liable and exempt activities is not always black and white, and making an error in the wrong direction — assuming you are not obliged when in fact you are — can result in fines.
Does your non-profit carry out VAT-liable activities for part of its operations? Cleero supports mixed VAT situations and your accountant can configure the correct settings per invoice type.
More information or just get started — try Cleero free.