Cashfeed is 120% tax deductible
Cashfeed is a recognised e-invoicing package within the meaning of the Belgian law of 6 February 2024, and the costs you incur are 120% tax deductible. For every euro you spend on e-invoicing services, you may deduct €1.20 from your taxable profit or income — and this applies until the end of 2027.
It sounds almost too good to be true, but it's real. As part of the mandatory e-invoicing obligation that applies to all Belgian VAT-liable businesses from 1 January 2026, the Belgian legislator introduced a temporary enhanced cost deduction for e-invoicing packages. Cashfeed is such a package — recognised under the law of 6 February 2024, and built for drafting, sending and receiving electronic invoices in structured format via the Peppol network. The credits you consume with Cashfeed qualify as direct costs for e-invoicing services and fall fully under this measure. In this article, you'll find out who qualifies, what exactly is deductible, and how long the scheme runs.
Who qualifies for the 120% deduction?
The enhanced cost deduction applies to three groups. Large companies are excluded — the measure is specifically aimed at entrepreneurs who feel the transition to e-invoicing in their day-to-day operations.
Self-employed
Sole traders subject to personal income tax.
Small companies
Companies meeting the legal small company definition.
Liberal professions
Lawyers, architects, consultants, accountants.
When are you a "small company"?
Your company is small if, at the closing date of the financial year, it does not exceed more than one of the following three thresholds:
Max. employees
Max. annual turnover (excl. VAT)
Max. balance sheet total
Before losing small company status
Exceed only one threshold? You remain a small company. You lose the status only if you exceed two or more thresholds simultaneously, for two consecutive years. Only in the third year will you be treated as a large company. The reverse also applies: if you shrink again, you regain small company status after two consecutive years.
Note for affiliated companies.
Do you have multiple affiliated entities? Then you assess the thresholds on a consolidated basis — all companies combined. For groups without formal consolidation, there is a relaxed calculation method where the thresholds may be increased by 20%.
What exactly is deductible?
Not everything related to e-invoicing falls under the enhanced deduction. The distinction matters.
120% deductible
Periodic subscription costs and consumed credits for software that processes invoices via the Peppol network — such as Cashfeed
Consultancy fees specifically incurred for the preparation or implementation of e-invoicing
Not 120% deductible
Depreciation of software purchases — custom development or one-off licence purchases
General IT costs not specifically related to e-invoicing
Cashfeed is plug-and-play — no custom dev required.
Choosing a subscription-based solution like Cashfeed immediately qualifies for the 120% deduction, while companies building custom software can only claim the lower 20% investment deduction. On top of the tax benefit, you're up and running with Cashfeed in under two minutes — no IT project needed.
Alternative for software purchases: 20% investment deduction
For those who do purchase and depreciate software, the enhanced investment deduction of 20% on digital assets for e-invoicing applies from 1 January 2025. This comes on top of normal depreciation and equally applies only to small companies, self-employed and liberal professions.
How long does the scheme run?
The measure is temporary. The enhanced 120% cost deduction — against taxable profit for companies, or against professional income for sole traders — applies to costs incurred in taxable periods 2024, 2025, 2026 and 2027. The scheme expires on 31 December 2027 (tax year 2028) and will not be extended.
1
1 Jan 2024
Start date of the measure
Costs from this date onwards are eligible
2
1 Jan 2026
E-invoicing mandatory for all Belgian B2B transactions
PDF invoices by email are no longer permitted
3
Now — 31 Dec 2027
Full window: 120% cost deduction active
You are here
The earlier you start, the more taxable periods you benefit from
4
From 1 Jan 2028
End of the measure
Back to the standard 100% deductibility
What does this mean in practice?
Say you consume €1,200 worth of Cashfeed credits in a year — for example 400 invoices at 3 credits each, at a credit price of €0.10. The 120% rule gives you an additional deduction of €240.
In summary
The 120% deduction applies if you can answer yes to three questions:
1
Self-employed, a liberal profession, or a small company?
Max. 50 employees / €11.25M turnover / €6M balance sheet total
2
Have you incurred costs for e-invoicing services?
Via a package like Cashfeed operating on the Peppol network
3
Did those costs fall within a taxable period?
Between 1 January 2024 and 31 December 2027
Opting for a one-off software purchase instead of a usage-based model? Then you don't qualify for the 120% cost deduction, but you do qualify for the enhanced 20% investment deduction on digital assets for e-invoicing — also a tax advantage, albeit a smaller one.
Always discuss the specific application with your accountant. The rules may depend on your particular situation, and the tax authorities expect correct application in your tax return.
Cashfeed is a recognised e-invoicing package within the meaning of the Belgian law of 6 February 2024
Built for drafting, sending and receiving electronic invoices via the Peppol network. The credits you consume qualify as direct costs for e-invoicing services, and the e-invoicing service is explicitly and separately listed on your Cashfeed invoice by default.
