Tax incentives for mandatory e-invoicing

Increased cost deduction of 120% for e-invoicing

The first measure is a temporary increased cost deduction of 120% for self-employed individuals and small companies. This increased cost deduction will apply from the 2025 tax year (linked to a financial year starting no earlier than 1 January 2024) and runs until the 2028 tax year (linked to a financial year starting no earlier than 1 January 2027).

This measure applies to costs related to invoicing software for creating, sending, and receiving electronic invoices in a structured form that allows for automatic and electronic processing. Periodic subscription costs for these invoicing packages, as well as consulting fees related to the implementation of e-invoicing, may be eligible for this increased cost deduction.

The increased cost deduction is exclusively applicable to direct costs associated with meeting the electronic invoicing obligations, provided that the company chooses not to capitalize these costs or if these costs are not eligible for capitalization. Depreciation is therefore explicitly excluded from this increased cost deduction.

Increased investment deduction for digital fixed assets

Since the increased cost deduction does not apply to depreciation, an additional measure has been introduced: an increased investment deduction of 20% for digital investments. This scheme will be permanent starting 1 January 2025, and covers investments in invoicing, customer relationship management, e-commerce, and cybersecurity.

As a result, there will be equal tax treatment for expenses related to structured electronic invoicing, regardless of whether these expenses are classified as investments or direct costs.