02/20/2024

Increased cost deduction of 120% for e-invoicing software

The Belgian Chamber of Representatives has just passed a law amendment that provides businesses with a fiscal advantage when they transition to e-invoicing. Entrepreneurs will be able to benefit from a temporary increased cost deduction of 120% when they incur costs for an invoicing program or advice on e-invoicing.

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E-invoicing and consultancy 120% deductible

E-invoicing mandatory from January 1, 2026

Starting January 1, 2026, all Belgian enterprises, regardless of their size, are required to use e-invoicing. This means they must be able to send and receive structured electronic invoices (SEIs) to other companies via the Peppol network. This can be easily done with specialized e-invoicing software like BIllit.

120 % cost reduction

Especially SMEs will need to invest in (new) software packages. To facilitate the transition for them, the Belgian government has decided that every sole proprietorship or SME can benefit from a 120% cost deduction in income tax related to structured electronic invoicing. Specifically, this includes subscription or advisory expenses for e-invoicing software, such as personal consultancy. The measure applies to the taxable period from 2024 to 2027. To maximize the benefits of this rule, it is advisable to start early.

Getting started with e-invoicing

Do you have questions about the impact of electronic invoicing on your business or do want to know how to make the transition smoothly?

Attend a free webinar at Billit or have our colleagues visit your company for a tailor-made consultancy session.

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Start with e-invoicing today