Short answer
Belgian sole proprietorships and small companies can deduct 120% instead of 100% of what they pay for an invoicing package that creates, sends and receives structured e-invoices, such as Peppol software. The rule covers subscription fees and implementation advice in tax periods 2024 through 2027. Pay €240 a year and you deduct €288. Depreciation does not qualify; capitalized digital investments can get a 20% investment deduction instead.
Since January 1, 2026, VAT-registered businesses in Belgium must exchange structured e-invoices with each other. To soften the cost of switching, Belgian law added a temporary increased cost deduction (Article 64ter of the Income Tax Code 1992), explained by the Federal Public Service Finance in Circular 2026/C/46 of March 19, 2026. This guide covers which costs qualify, who can claim it, what it saves and which records to keep. It only helps if your profit is taxed in Belgium.
What is the 120% increased cost deduction?
A business expense normally reduces taxable profit by 100% of its amount. For an invoicing package that creates, sends and receives structured e-invoices, eligible Belgian businesses may deduct 120%. You pay your provider the same price, but your taxable profit falls by an extra 20% of that cost.
A structured e-invoice moves automatically from the sender’s system to the recipient’s, without retyping. In Belgium, Peppol is the default route. A PDF sent by email is not a structured e-invoice, so software that only produces PDF invoices falls outside the measure.
The deduction is temporary. It covers tax periods that start between January 1, 2024 and December 31, 2027. For self-employed individuals paying Belgian personal income tax, that means income years 2024 through 2027 (tax years 2025 through 2028).
A second tax measure for e-invoicing exists alongside it. Which one applies depends on how you book the expense:
- Increased cost deduction of 120%: for subscriptions to e-invoicing packages and implementation advice that you do not capitalize, in tax periods 2024 through 2027.
- Increased investment deduction of 20%: for capitalized digital fixed assets that meet the investment deduction conditions, for investments from January 1, 2025.
Belgian e-invoicing portal: tax incentives for e-invoicing (in Dutch)
Which costs qualify?
The circular from the Belgian tax authority names two kinds of cost: recurring subscription fees for an e-invoicing package, and advice to prepare for or operate it. That advice can cover, for example, how data gets into the package or how it connects to your accounting software. Only direct costs that you do not capitalize count.
If another business recharges its e-invoicing costs to you, the 120% does not apply to you, even when it recharges them at cost or as a fixed amount.
Say a consultant sends one invoice for €300 of advice on which package to choose and €600 of help connecting it to your accounting software. Only the €600 qualifies for 120%, so ask for the two items as separate lines.
| Expense | 120% deductible? |
|---|---|
| Subscription to software for e-invoices, such as via Peppol | Yes |
| E-invoicing surcharge on existing software | Yes, if the surcharge is listed separately on the invoice |
| Advice on setting up or connecting the package | Yes |
| Advice on which package to choose | No, but it is an ordinary business expense |
| Depreciation of capitalized software | No, but the 20% investment deduction may apply |
| Costs another business recharges to you | No |
Belgian Federal Public Service Finance: Circular 2026/C/46 (in Dutch)
Who can claim the deduction?
Sole proprietorships qualify: self-employed individuals taxed under Belgian personal income tax. The size condition in the law applies only to companies.
A company qualifies only if it is a small company under Article 1:24 of the Belgian Code of Companies and Associations. That means it exceeds no more than one of the thresholds below on the balance sheet date of its last closed financial year. Parent companies use consolidated figures. Large companies are excluded, even if they pay for e-invoicing software by subscription.
A foreign company with a Belgian establishment that pays Belgian non-resident corporate tax can also claim it, measured against the same criteria.
| Criterion | Threshold |
|---|---|
| Staff, annual average | 50 full-time equivalents |
| Annual turnover excl. VAT | €11,250,000 |
| Balance sheet total | €6,000,000 |
Worked example: what does 120% save?
The extra deduction equals 20% of the cost. What you save in tax depends on the rate that applies to the slice of profit it removes. The example uses a few illustrative rates and leaves out local surcharges.
Subscription to invoicing software with Peppol
Subscription: €20 per month excl. VAT, all of 2026 Cost for 2026: 12 × €20 = €240 Deductible at 120%: €240 × 1.2 = €288 Extra deduction on top of the normal 100%: €48 Tax saved on that extra €48 (illustrative rates): at 25%: €12.00 at 40%: €19.20 at 50%: €24.00
How to claim it and what to keep
A company subject to Belgian corporate tax or non-resident corporate tax adds 20% of the eligible costs to its return as an increase in its opening taxable reserves, on the dedicated line for the increased deduction of e-invoicing package costs (code 1073).
Self-employed individuals claim the increased deduction in their personal income tax return. If an accountant prepares it, flag these costs separately so the 120% is applied.
Keep these records so you can show that a cost qualifies:
- Invoices from your software provider that list the e-invoicing subscription, or the e-invoicing surcharge, as a separate line.
- A description of the package showing that it creates, sends and receives structured e-invoices.
- Advice invoices with a clear description that separates implementation help from advice on choosing a package.
- For a company: the annual accounts that show it is a small company.
How the deduction relates to Peppol registration
The deduction is tied to Belgium’s obligation to send and receive e-invoices, with Peppol as the default route. You register on Peppol through a service provider, usually your invoicing software, using your Belgian enterprise number. The subscription you pay for that is exactly the kind of cost the 120% targets.
Factuur Simpel Complete lets you send and receive Peppol invoices and register your business yourself with your enterprise number. The Starter plan does not include Peppol. Whether a specific invoice line qualifies depends on how the cost is invoiced and on your own tax situation.
Peppol registration: check and set up your Peppol ID
Frequently asked questions
Is Peppol software 120% tax deductible in Belgium?
Yes for sole proprietorships and small companies, if you pay a subscription for a package that creates, sends and receives structured e-invoices, such as via Peppol. It applies in tax periods 2024 through 2027. If you buy software and capitalize it, the 120% does not apply; the 20% investment deduction may apply instead.
Does the 120% apply to my existing accounting software?
Only to the surcharge you pay because of e-invoicing, and only if that surcharge is stated explicitly and separately on your provider’s invoice. The rest of the subscription stays an ordinary business expense at 100%.
Is advice from my accountant on e-invoicing deductible at 120%?
Yes, if the advice covers preparing or operating your invoicing package, for example how data gets into the package or how it connects to your accounting software. Advice on which package to choose does not qualify and remains an ordinary business expense.
Can a large company claim the increased cost deduction?
No. A company qualifies only if it is a small company under Article 1:24 of the Belgian Code of Companies and Associations, meaning it exceeds no more than one of these thresholds: 50 employees, €11,250,000 annual turnover and €6,000,000 balance sheet total.
How long does the 120% deduction apply?
For tax periods that start between January 1, 2024 and December 31, 2027. For self-employed individuals, that means income years 2024 through 2027. A tax period that starts on or after January 1, 2028 no longer qualifies.
How much tax does the 120% deduction save?
The extra deduction is 20% of the cost. With €240 in subscription fees a year, you deduct an extra €48. What that saves depends on your tax rate: at an illustrative rate of 40%, it is €19.20.
Send and receive Peppol invoices from one place
With Factuur Simpel Complete you register your business on Peppol and send and receive e-invoices. Try it free for 30 days, no payment details needed.
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Sources and further reading
- Belgian e-invoicing portal: fiscale stimulansen voor het invoeren van e-facturering (in Dutch)
- Belgian Federal Public Service Finance: Circular 2026/C/46 on the increased cost deduction for e-invoicing (March 19, 2026, in Dutch)
- Belgian Official Gazette: Law of February 6, 2024 introducing mandatory e-invoicing (in Dutch)
- National Bank of Belgium: size criteria for companies