As a sole proprietor in Belgium, administration is probably not your favorite activity. Drawing up invoices, processing incoming invoices, submitting VAT returns… sigh. And then you suddenly hear about ‘Peppol’ or ‘e-invoicing’, a mandatory digital invoicing method. Is this just more hassle? Another expense?
Hold on, because we have good news. Peppol is not just an extra obligation; it is an opportunity. An opportunity to automate your administration, save time, and—yes—reduce your taxes. The big question is not whether you can claim the costs for Peppol, but rather how you can get the most out of it. And the tax authorities are here to give you a helping hand.
Peppol costs: what exactly can you claim?
The answer is simple: all expenses you incur to use Peppol for your business are deductible professional expenses. They belong in the same category as your other software or administrative costs. The condition for including an expense in your accounts is that it must be incurred with the intention of maintaining or increasing your professional income.
Practical examples of deductible costs
- Freelance graphic designer: Suppose you use Dexxter, the accounting tool that supports Peppol. When your printing paper supplier sends you an invoice, it is automatically entered into your accounts through Peppol. 120% tax deduction for Peppol software costsYou can simply enter the monthly or annual cost of your smart software as a professional expense.
- Plumber: A plumber receives weekly invoices from his wholesaler, who has already completely switched to Peppol. He now needs a tool like Dexxter to read those invoices. This Dexxter subscription is a perfect example of a deductible digital professional expense.
The really good news: a 20% tax bonus
As if 100% deductibility wasn’t enough, the government has created an extra incentive to speed up the switch to e-invoicing. And this is where it gets truly interesting for you as a sole proprietor.
For a limited period, you can enjoy an increased cost deduction of 120% for expenses specifically related to electronic invoicing.
How does the increased cost deduction of 120% work?
- Who is it for? This measure applies to self-employed persons subject to personal income tax (i.e., you, with your sole proprietorship!), liberal professionals, and small corporations.
- What is it for? Periodic subscription costs for an e-invoicing platform (such as the software you use to invoice via Peppol) and the associated consultancy costs.
- When? The measure applies to costs incurred from January 1, 2024, to December 31, 2027. This therefore applies to the tax years 2025 to 2028.
Suppose you pay an annual subscription of €180 for your invoicing software that supports Peppol.
Instead of €180, you can claim €216 (€180 x 120%) as a professional expense. This means you reduce your taxable income by more than what you actually spent. Not only does the tax authority contribute to the cost, it even gives you a small bonus on top!
From mandatory expense to smart investment
At first, you might think, “Peppol is just another administrative hassle.” But when you look at the big picture, you see something else. The software you need for e-invoicing is a deductible expense. And thanks to the temporary 120% measure, you are actually investing in smoother administration, while the tax authorities enthusiastically contribute.
And the benefits don’t stop at taxes. Why? Because you no longer have to manually enter invoice data, for example. Everything is imported automatically and error-free. This not only saves you money, but also valuable time that you can spend doing what you’re passionate about: running your business.
Conclusion: get started today and reap the maximum benefits
The conclusion is clear. Not only are the costs you incur for Peppol fully deductible as business expenses, but you can even benefit from an additional tax bonus of 20% until 2028. Peppol therefore has many advantages and, if you already use Dexxter, costs you nothing extra.
- Less administration: Automatic processing saves you hours of work.
- Lower costs: You save on processing time and benefit from a tax advantage.
- A head start: You are perfectly prepared for the future and ahead of the competition.
Turn the Peppol obligation into an advantage. It is a smart investment in the efficiency of your business, and the tax authorities are happy to help you get started.