Costs for e-invoicing are temporarily 120% tax-deductible

Starting from 2026, all self-employed individuals will need to send their invoices electronically in a specific format. This is slightly more complex than updating an Excel or Word file, meaning both sole traders and companies will need new software and advice. Consequently, there will be a temporary increase in the deductibility of expenses to 120% for costs incurred in the context of e-invoicing. Discover all the details about e-invoicing and the increased tax deduction in this article.

Which costs are eligible for the 120% tax deduction?

The temporary increased tax deduction of 120% applies not only to costs associated with e-invoicing but also to security expenses and costs related to bicycle parking and company bicycles.

In this article, our focus is on e-invoicing, but if you’re interested in learning more about bicycle-related expenses and security costs, you can read all about it here.

In terms of e-invoicing, you’re eligible for a 120% tax deduction for advisory and software expenses. The rule specifically applies to invoicing software that allow you to create, send, and receive electronic invoices in the mandatory structured format.

💡Accountable tip: The purchase or amortization of an accounting package is not 120% deductible. The rule only applies to software with a subscription, such as Accountable.

When does this temporary measure take effect?

The 120% tax deduction for e-invoicing applies from 1 January 2024, therefore impacting the tax year 2025 onwards. This temporary change to Article 64ter is set to expire on 1 January 2028.

Hence, from the tax year 2029 onwards, the enhanced deduction for these expenses will no longer be available.

Who benefits from the increased tax deduction?

The 120% tax deduction applies to both personal income tax and corporate income tax. It is available for self-employed individuals (natural persons), liberal professions, and certain companies. The rule does not apply to companies that do not meet the definition of a small company.

Why was this measure introduced?

E-invoicing is set to become mandatory to boost efficiency and transparency in business transactions across the EU. By 1 January 2026, it will be compulsory for all Belgian companies to adopt e-invoices for B2B transactions.

Given that many businesses currently lack the required software, a temporary support measure has been implemented.

What are e-invoices?

E-invoicing is a process where businesses create, send, receive, and process invoices digitally. This requires the use of a specific format that both the sender and recipient can automatically process in their accounting software.

It doesn’t matter whether you use Accountable or another recognized program for e-invoicing.

Thanks to e-invoicing, companies can exchange invoices more efficiently and quickly. This reduces administrative burdens and significantly lowers the margin of error.

What is the PEPPOL network?

PEPPOL, short for Pan-European Public Procurement Online, is an international network for the real-time exchange of documents such as invoices. This network enables invoices to be exchanged quickly and securely in a standardized manner.

Initially, PEPPOL was primarily focused on Europe, but today, it is accessible to companies worldwide.

💡Read more about electronic invoicing for the self-employed in this article.

Enjoy a 120% deduction for e-invoicing with Accountable

Both new and existing customers can benefit from this increased 120% deduction for using our software.

New to invoicing, accounting and tax software? Try Accountable now for 14 days free. ✨