120% tax deduction for e-invoicing software (Belgium, 2024–2027)
Small Belgian companies and self-employed people can temporarily deduct e-invoicing software costs at 120% instead of 100%. That makes the switch required since 2026 cheaper in net terms.
What is the measure?
For the 2024 to 2027 tax periods, small SMEs and self-employed people can deduct 120% of their invoicing software and e-invoicing advice costs from taxable profit. The aim is to make the mandatory switch to e-invoicing over Peppol less costly.
Who qualifies?
- Self-employed people and sole traders.
- Small companies: at the balance sheet date, no more than one of these limits exceeded: €11,250,000 turnover, €6,000,000 balance sheet total, 50 employees on average.
Which costs count?
- Recurring subscription costs for invoicing software.
- Advisory costs made specifically to prepare for or implement the obligation.
- An extra charge for e-invoicing on top of an existing software subscription, if it is shown separately on the invoice.
Depreciation never counts. For capitalised digital investments, an increased investment deduction of 20% applies since 1 January 2025; that is a separate scheme.
Worked example
A €9 a month subscription costs €108 a year. With the increased deduction you deduct €129.60 instead of €108: €21.60 more.
| Rate | Saving 100% | Saving 120% | Net cost |
|---|---|---|---|
| 20%SME rate | €21.60 | €25.92 | €82.08 |
| 25%company | €27.00 | €32.40 | €75.60 |
| 45%sole trader | €48.60 | €58.32 | €49.68 |
The benefit of the extra 20% is modest, but it comes on top of the normal deduction as a business expense.
How do you claim it?
Your accountant includes the extra 20% in your tax return. Keep the invoices or payment receipts of your subscription in your books, and make sure an extra charge on an existing package is shown separately on the invoice.
And PeppolKit?
PeppolKit is a monthly subscription to software that turns every webshop order into an invoice and sends it over Peppol to your business customers. According to the description by the FPS Finance, such recurring subscription costs fall under the measure. On Shopify you pay through your Shopify bill; on WooCommerce, PrestaShop and Lightspeed through Mollie. Give those invoices to your accountant.
Frequently asked questions
Does this apply to Dutch businesses too?
No. It is a Belgian tax measure for businesses taxable in Belgium. In the Netherlands, business-to-business e-invoicing is planned for around 2030.
Until when does the 120% apply?
For the 2024 to 2027 tax periods. After that, a subscription remains deductible at 100% as a business expense.
Do my accounting software and Peppol receiving count too?
Yes, if it concerns recurring costs for invoicing software. For an extra e-invoicing charge on an existing package, that charge must be shown separately on the invoice.
Source: FPS Finance: tax incentives for e-invoicing (page in Dutch)
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Install in Shopify Start free with 10 invoices a month.A summary for orientation, not tax advice. For your situation, check with the FPS Finance or your accountant.