Belgium - NL
In February 2024, a law was voted in the Belgian parliament that makes electronic invoicing (or e-invoicing / e-billing) mandatory for all invoices sent between companies subject to VAT as of Jan. 1, 2026. The Belgian government also immediately provided two tax support measures to offset the costs. In this article, we discuss these in more detail.
The government has introduced a temporary increase in the cost deduction to 120% for companies purchasing software that supports e-invoicing. This applies not only to the software itself that can process structured electronic invoices, but also to the consulting costs incurred by companies to comply with the obligations under this law. The deduction applies to direct costs associated with preparing for compliance with the e-invoicing obligations. It is therefore important that e-invoicing costs are clearly stated on the invoice.
With the cost deduction for e-invoicing, the company is allowed to deduct 120% of the actual costs incurred as tax-deductible expenses. A Billtobox user with a premium 500 subscription has an annual cost of 120 euros (10 euros per month). This user may therefore deduct 144 euros (120% of 120 euros) from her taxable profit. The full cost of Billtobox (in this example, 120 euros per year) may be deducted from expenses because Billtobox is a program that supports e-invoicing to the full 100%. For packages that do more than just e-invoicing (e.g. ERP or CRM packages), only the portion for e-invoicing may be deducted. Deducting more than the actual cost artificially reduces taxable profit, resulting in a lower tax burden.
This deduction applies to all businesses and is applicable to tax years 2024 through 2027.
For SMEs, there is also an increased investment deduction of 20%. This investment deduction applies to all digital investments related to e-invoicing and is in addition to normal depreciation. This increased investment deduction applies from Jan. 1, 2025, and applies exclusively to SMEs. An SME is a company that meets one of the following criteria: fewer than 250 employees, an annual turnover of no more than 50 million euros, or a balance sheet total of no more than 43 million euros. Thanks to this increased deduction, the tax authorities encourage investments in electronic invoicing by increasing the effective tax deduction by 20%, leading directly to lower taxes.
Billtobox does not fall under the enhanced investment deduction scheme because Billtobox is a subscription cost and not an investment (which would be depreciable).
Don't hesitate to contact your accountant if you have additional questions about this.
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