120% tax deduction for e-invoicing costs via Peppol

Since 1 January 2026, e-invoicing via Peppol has been mandatory for all B2B transactions between Belgian VAT-registered businesses. This transition comes with costs — but the government is giving something back. As a small company or sole proprietor, you can deduct those costs at 120% for tax purposes. An attractive benefit that many entrepreneurs are still unaware of.

What does the 120% deduction actually mean?

The Belgian government wants to support the transition to mandatory e-invoicing and has therefore introduced a fiscal incentive. In practice, this means that certain costs you incur to comply with the Peppol requirement are not deductible at 100% but at 120% from your taxable profit.

For example: you pay €1,000 to an invoicing platform for an annual subscription. Instead of €1,000, you can now deduct €1,200. That extra 20% gives you a tangible tax benefit.

Who qualifies for this benefit?

The increased cost deduction is specifically aimed at:

• Sole proprietors (self-employed in main or secondary occupation)
• Small companies as defined by the Belgian Code of Companies and Associations (WVV)

Large enterprises are therefore not eligible. Not sure whether your company qualifies as "small"? Check with your accountant. In short: you are a small company if, on the balance sheet date, you do not exceed more than one of the following thresholds:

• Annual turnover (excl. VAT): €9,000,000
• Balance sheet total: €4,500,000
• Average annual workforce: 50 employees

Which period?

The measure applies to costs incurred from 1 January 2024 (tax year 2025) until 31 December 2027 (tax year 2028). It is therefore worthwhile to plan your e-invoicing investments within this period.

Which costs qualify?

The increased deduction applies to recurring costs that are directly related to e-invoicing via Peppol. Think of:

• Subscription costs for invoicing software that sends via Peppol (e.g. Yuki, Exact Online, Billit, …)
• Advisory costs for guidance in preparing or making your e-invoicing operational
• Implementation costs for setting up connections or integrations with your existing systems
• Accountant costs specifically for the setup and guidance of your e-invoicing system

Which costs are excluded?

Not everything qualifies. The increased deduction does not apply to:

• Depreciations — if you purchase invoicing software (one-time licence), you depreciate it over several years. Those depreciation costs fall outside the 120% scheme.
• Hardware — a new laptop or scanner is not covered, even if you use it for invoicing.
• General accounting costs — only costs specifically related to setting up or maintaining e-invoicing operations count.

The distinction lies in recurring costs versus investments that you depreciate. In doubt? Check with your accountant which invoices fall under the scheme.

How do you claim the deduction?

In practice, it is fairly straightforward:

1. Keep your invoices — make sure you properly file all invoices for invoicing subscriptions, advice and guidance.
2. Discuss with your accountant — they will process the 120% deduction in your tax return (corporate tax or personal income tax).
3. Be specific — ensure that invoices clearly state that the services relate to e-invoicing or Peppol.

Combine with automation for maximum return

The transition to Peppol is the ideal moment to review your entire invoicing process. Many SMEs find that, alongside the legal requirement, they also immediately save time by streamlining their administration.

Think of: automatically importing invoices, integrations with your accounting software, or a workflow where work orders flow directly into invoices. Those implementation costs also fall under the 120% scheme — as long as they relate to e-invoicing.

Summary