The digitalization of businesses in Belgium has never been more advantageous. Thanks to the increased tax deduction of 120% (extended until 2027), Belgian self-employed workers and small businesses have an exceptional opportunity to reduce their taxes while modernizing their management. Discover how Flexina, your Peppol electronic invoicing solution in Belgium, allows you to take full advantage of this tax benefit.
What is the 120% Tax Deduction in Belgium?
The 120% tax deduction is a Belgian government measure aimed at encouraging the adoption of digital tools. It allows self-employed workers and small companies in Belgium to deduct 120% of the subscription and consulting costs related to Peppol electronic invoicing software, such as Flexina, from their taxable income. Electronic invoicing via the Peppol network is mandatory in Belgium since January 1, 2026.
Flexina: Your Partner in Belgium for Simplified Electronic Invoicing
Flexina offers features perfectly suited to this tax deduction in Belgium:
- Peppol-compliant electronic invoicing: Flexina ensures the creation, sending and receiving of electronic invoices compliant with Peppol standards, facilitating the transition to mandatory invoicing in Belgium.
- Simplified Peppol network registration: Register on the Peppol network with one click directly from Flexina and start exchanging your invoices securely in Belgium.
- Payment management: Automatically generate EPC QR codes and Belgian structured communications on your invoices. Integrate online payment solutions and benefit from automatic bank reconciliation thanks to Ponto integration.
- Customer reminders: Automate payment reminders to improve your cash flow management in Belgium.
- Advanced document customization: Create custom quotes and invoices with your logo and information, compliant with Belgian requirements.
- Integration with accounting tools: Synchronize your sales and purchase invoices with your accounting management tools for optimal tracking in Belgium.
How to get your 120% tax reduction for electronic invoicing with Flexina?
New customers
Flexina's 2026 offer already includes Peppol electronic invoicing. You don't have to do anything more!
Existing customers
Simply activate the Peppol module to upgrade your current version of Flexina to electronic invoicing.
Simply declare your investment for electronic invoicing in your taxes to benefit from the 120% tax deduction.
Legal Basis: Belgian Income Tax Code Articles
The 120% increased tax deduction for electronic invoicing costs is grounded in solid legal provisions within Belgian tax law. Article 64ter of the Income Tax Code 1992 (CIR 92) forms the foundation of this measure. This provision was modified by the law of February 6, 2024, introducing the obligation for electronic invoicing (published in the Belgian Official Journal on February 20, 2024).
Article 64ter of the CIR 92 provides for the increased deduction for costs related to structured electronic invoicing. The 120% rate means that for every euro spent on a subscription to Peppol-compliant electronic invoicing software, you can deduct 1.20 euros from your taxable base. The measure applies to taxable periods 2024 through 2027, corresponding to tax years 2025 through 2028. Important: only subscription fees and consulting costs are eligible. Depreciation on capitalized software is excluded from this increased deduction.
In parallel, Article 69, §1 of the CIR 92 provides for a 20% investment deduction for digital fixed assets acquired by SMEs and self-employed workers (rate applicable from January 1, 2025). This deduction applies to digital assets capitalized on the balance sheet, including purchased electronic invoicing software.
Who Can Benefit from the 120% Deduction?
Eligible Businesses
The 120% increased tax deduction is accessible to a wide range of Belgian economic actors:
- Self-employed individuals: all self-employed workers, whether full-time or part-time (complementary), regardless of their sector of activity.
- Small companies: small companies as defined by the Companies and Associations Code, subject to corporate tax in Belgium, including SRL (formerly SPRL), SA, SC, and SNC.
- Liberal professions: lawyers, doctors, architects, accountants, and any other liberal profession subject to personal income tax on professional income.
- SMEs as defined by Article 1:24 of the Companies and Associations Code: small companies fully benefit from this measure.
Eligible Expenses
The following costs fall within the scope of the increased deduction:
- Subscriptions to Peppol-compliant electronic invoicing software (such as Flexina)
- Setup and configuration fees for the software
- Peppol network registration fees
- Consulting and training services related to implementing electronic invoicing
- Connection and integration costs with a Peppol access point
Expenses must be incurred between January 1, 2024, and December 31, 2027, to be eligible. The supplier's invoice must clearly state that it relates to structured electronic invoicing software.
Concrete Calculation Examples
Example 1: Self-Employed with a Flexina Subscription
Consider a self-employed worker who subscribes to Flexina at €19.99/month excl. VAT (i.e., €239.88/year).
- Annual cost excl. VAT: €239.88
- Tax deduction at 120%: €239.88 x 120% = €287.86 deducted from the taxable base
- Deduction bonus: €287.86 - €239.88 = €47.98 in additional deduction
- For a self-employed worker at the marginal rate of 50% (bracket above €48,320 for 2024 income), the actual tax saving on the bonus is €47.98 x 50% = €23.99 in additional net savings per year
- Add municipal surcharges (approximately 7%), and the additional net savings rise to approximately €25.67 per year
Example 2: SME with Annual Subscription
A small company paying a Flexina subscription of €49/month excl. VAT (i.e., €588/year):
- Tax deduction at 120%: €588 x 120% = €705.60 deducted from the taxable base
- Deduction bonus: €705.60 - €588 = €117.60
- At the reduced corporate tax rate of 20% (for SMEs on the first €100,000 bracket): additional savings of €117.60 x 20% = €23.52 per year
- At the standard rate of 25%: additional savings of €117.60 x 25% = €29.40 per year
Two Distinct Tax Mechanisms
It is important to note that the 120% increased deduction and the 20% investment deduction apply to different types of expenses:
- The 120% deduction applies to subscription fees (recurring expenses) and consulting costs related to electronic invoicing
- The 20% investment deduction applies to capitalized digital assets on the balance sheet (purchased software, multi-year licenses)
- Depreciation on capitalized software is excluded from the 120% increased deduction
The 20% investment deduction is available from January 1, 2025 for SMEs and self-employed workers. Consult your accountant to determine which mechanism is most advantageous for your situation.
Timeline: Measure Extended Until December 2027
The 120% tax deduction applies to expenses incurred until December 31, 2027, as established by the law of February 6, 2024. Here is the complete timeline:
- January 1, 2024 - December 31, 2027: the period during which electronic invoicing expenses benefit from the 120% deduction
- January 1, 2026: effective date of the mandatory B2B electronic invoicing via Peppol in Belgium
- Tax years 2025 to 2028: the fiscal years covered by the measure
If you started using Flexina in 2024 or 2025, your expenses from those years are already eligible. Expenses from 2026 and 2027 are also eligible. There is still plenty of time to take advantage of this measure.
How to Claim the Deduction: Practical Steps
To benefit from the 120% tax deduction, here are the concrete steps to follow:
For Self-Employed Individuals
- Keep all your Flexina subscription invoices (or any other Peppol electronic invoicing software)
- In your personal income tax return (IPP), declare the increased amount (120% of the cost) under the deductible professional expenses section
- Your accountant records 120% of the amount excl. VAT as a deductible expense in your accounts
- In case of an audit, you must be able to prove that the software is indeed a Peppol-compliant structured electronic invoicing tool
For Companies
- The expense is recorded at 100% in the company's accounts
- The 20% increase (to reach 120%) is deducted extra-accounting through the corporate tax return (disallowed expenses / deductions section)
- Your accountant performs the fiscal adjustment in the corporate tax return
- Keep supporting documents (invoices, subscription contract, proof of Peppol compliance)
What to Tell Your Accountant
Provide your accountant with the following information:
- You use Flexina, an electronic invoicing software compliant with the Peppol network
- The expenses are eligible for the 120% increased deduction (Article 64ter CIR 92)
- The annual amount excl. VAT of your subscription
- If you capitalize digital software, also inform them about the 20% investment deduction (Article 69 CIR 92), which applies to capitalized assets
Frequently Asked Questions
Can part-time self-employed workers claim it?
Yes, absolutely. The 120% deduction is accessible to part-time (complementary) self-employed workers on the same basis as full-time self-employed workers. Electronic invoicing expenses are deductible professional expenses, regardless of the nature of your self-employed activity. If you are both an employee and a part-time self-employed worker, the deduction applies only to the self-employed portion of your income.
What about multi-year subscriptions?
If you take out a multi-year subscription, each monthly payment or annual payment is deductible at 120% during the fiscal year in which the expense is incurred. For example, an annual subscription paid in January 2026 is deductible at 120% in the tax return for tax year 2027 (2026 income). The important thing is that each payment is made before December 31, 2027.
Is VAT also deductible at 120%?
No. The 120% increased deduction applies only to the amount excluding VAT. VAT remains deductible normally at 100% through your periodic VAT return, according to the usual rules.
Does it have to be specifically Peppol software?
Yes. To benefit from the 120% deduction, the software must enable the sending and receiving of structured electronic invoices in accordance with Peppol BIS 3.0 standards. A simple invoicing software that generates PDFs is not sufficient. Flexina is certified compliant and connected to the Peppol network.
Can I claim the deduction if I started in 2024?
Yes. The measure covers expenses incurred from January 1, 2024. If you have been using Flexina since 2024 and have not yet applied the deduction, you can regularize the situation with your accountant during your next tax return.
Comparison: Cost of Flexina vs Tax Savings
Investing in Peppol electronic invoicing software like Flexina is a financially advantageous decision, even without considering the tax deduction. With the deduction, the advantage is even more pronounced.
- Flexina Starter subscription (€19.99/month excl. VAT): annual cost of €239.88. Thanks to the 120% deduction, you deduct €287.86. The additional tax saving (at the 50% rate + surcharges) is approximately €25.67 per year. Your actual net cost is lower than the listed price.
- Flexina Pro subscription (€49/month excl. VAT): annual cost of €588. You deduct €705.60. The additional tax saving is approximately €63 per year for a self-employed worker at the 50% marginal rate.
- Without compliant software: risk of fines for non-compliance with the B2B electronic invoicing obligation, time lost in manual management, and no increased tax deduction.
In summary, Flexina software partially pays for itself through tax savings. And beyond the fiscal aspect, it saves you time, reduces invoicing errors, and accelerates your collections through reminders and online payments.
Why Flexina Qualifies for the 120% Deduction
Flexina meets all the criteria to enable its users to benefit from the 120% increased deduction:
- Certified Peppol compliance: Flexina is a certified access point to the Peppol network, ensuring the sending and receiving of structured electronic invoices in UBL format compliant with the Peppol BIS 3.0 standard.
- Structured electronic invoicing: invoices created and received via Flexina are structured electronic invoices as defined by law, not simple PDFs.
- Recognized software publisher: Flexina is developed in Belgium and invoices its services with a compliant invoice, enabling fiscal justification of the expense.
- Eligible subscription format: the Flexina subscription is a recurring cost directly eligible for the 120% increased deduction (Article 64ter CIR 92).
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