Secure E-Invoicing: KYC/KYB Explained

As e-invoicing is soon becoming mandatory in Belgium, it is more important than ever to know to whom you are sending invoices and from whom you are receiving them. An e-invoice is not just a document. It is a financial instrument that triggers payments, affects tax filings, and defines legal obligations between businesses.

Just like with payments, you must be able to trust the sender and receiver implicitly. Yet in electronic invoicing, the focus is often primarily on technical aspects:

the correct format (UBL/EN16931)
delivery via the Peppol network or others
integration possibilities into administrative processes

However, a crucial mistake is made here: a technically correct invoice does not say anything about the legitimacy of the sender.

Identity and Security: More Than a Checkbox

Without strong verification, anyone can create an account, generate an invoice with a random VAT number, and send it. The result? A significant risk of fraud, such as carousel fraud or misuse of unverified Peppol IDs. Weak verification often relies solely on email or SMS, allowing anyone to claim they represent a business.

The numbers speak for themselves: the EU is estimated to lose €89 billion annually to VAT fraud, a quarter of which is directly linked to weak identity verification.

Security and Trust: KYC and KYB

A reliable e-invoicing environment requires Know Your Customer (KYC) and Know Your Business (KYB):

KYC: Verification of the user’s identity via official channels such as itsme or eID, including Multi-Factor Authentication.
KYB: Confirmation that the business actually exists (KBO, VAT number) and that the user is authorized to act on behalf of the business.

Without this verification, the Peppol network becomes an unreliable “post office,” and financial and legal risks are substantial.

Banqup: Putting Safety and Trust at the Center

At Banqup, safety and trust are central to everything we do. As a regulated and licensed payment institution, we have built our processes on the strictest identity standards and consistently apply them to all business transactions, including e-invoicing. By creating a network of fully verified businesses and users, we ensure that every invoice sent through Banqup is reliable.

Our KYC and KYB processes include:

Verification of individual users via itsme or eID
Multi-Factor Authentication via the Banqup One app
Verification of business information (such as KBO and VAT number)
Confirmation of the authorized representative

This ensures invoicing is secure, compliant, and fraud-resistant.

Looking Ahead: eIDAS 2.0 and Digital Organization Wallets

The future of digital identity and e-invoicing lies in eIDAS 2.0. eIDAS 2.0 is a key building block for future e-invoicing in Europe. Companies that invest in strong identity verification today will automatically be ready for new requirements tomorrow.

This European framework provides:

Fraud-resistant digital attestations (QEAA’s) that reliably confirm which business information, such as KBO numbers and authorized representatives, is authentic
Secure storage of these attestations in a digital business wallet
A single, uniform, legally robust system supporting both e-invoicing and ESG reporting

Companies that invest in strong identity verification now build trust and security while protecting themselves against fraud and compliance risks.

Conclusion

Electronic invoicing is far more than a technical exercise. It is a trust-based process between real businesses and real people. And that trust begins with strong identity—the cornerstone of any safe, future-proof digital economy.