Tax Deductions for Website Costs: Complete Guide for Belgian SMEs in 2026

TL;DR

As a Belgian SME, you can leverage website development costs for significant tax benefits. A website is classified as an intangible fixed asset, depreciated over its economic useful life (typically 3 years). On top of that, you benefit from VAT recovery (21%) and an enhanced digital investment deduction of 20%. Always keep your invoices and project documentation.

Website as an Intangible Fixed Asset: How Does It Work?

Under Belgian accounting rules, a professional website is treated as an intangible fixed asset (Commission for Accounting Standards, advisory note on "Software"). This means the acquisition costs are capitalised on the balance sheet and subsequently depreciated over the probable economic useful life.

In practice, most SMEs depreciate a website over 3 years — reflecting the rapid technological evolution of web development. Your accountant determines the exact term based on the expected utility for your business. There is no legally mandated minimum term, but the depreciation must be spread over at least 3 taxable periods to qualify for the investment deduction.

Costs that can be capitalised include development and programming, graphic design and branding, launch content creation, domain registration and initial hosting setup, SSL certificates, integrations with existing business systems, and training costs for website management.

Depreciation: Investment versus Expense

The distinction between an investment (capitalise and depreciate) and an expense (charge directly) in Belgium depends on the nature of the expenditure, not on a fixed monetary threshold.

When to capitalise and depreciate? A new website or a thorough redesign with new functionality constitutes an investment. You capitalise the total amount on the balance sheet and depreciate over the economic useful life (typically 3 years, straight-line). This means you recognise one-third of the amount as an expense each year.

When to book directly as an expense? Ongoing maintenance, minor adjustments, security updates, and content changes that don't fundamentally alter the nature of the website are booked directly as business expenses in the year of payment. The CBN clearly states that costs "solely intended to maintain or adapt the intangible fixed asset without changing the nature of the asset" cannot be capitalised.

Practical booking example for a €5,000 website project (excl. VAT): VAT recovery amounts to €1,050 via your periodic VAT return, and the annual depreciation is €1,667 per year over 3 years, each year deductible from your taxable profit.

The Digital Investment Deduction: 20% Extra Benefit

Since 2025, Belgium offers an enhanced basic investment deduction of 20% for digital investments (source: VLAIO, FPS Finance). This is a one-off additional tax benefit on top of the regular depreciation.

How does it work? If you invest €5,000 in a new website, you may deduct an additional 20% × €5,000 = €1,000 extra from your taxable profit in the year of investment, on top of the depreciation.

Conditions to qualify: your company must meet the definition of a small company (art. 1:24 CSA) or you must be a self-employed individual or liberal professional. The investment must be depreciated over at least 3 taxable periods. Passenger cars are excluded, but websites and software explicitly qualify.

Websites, webshops, e-commerce platforms, ERP integrations, and digital payment systems all fall under the definition of digital fixed assets eligible for this enhanced deduction.

VAT Rules for Website Development

Website development falls under digital services subject to 21% VAT in Belgium. As a VAT-liable entrepreneur, you can fully recover this VAT through your periodic VAT return.

For services from Belgian suppliers, you pay 21% VAT which you recover in full. For EU suppliers, the intra-community reverse charge mechanism applies: you report the VAT yourself and deduct it in the same return. For non-EU suppliers, there may be no VAT on the invoice, but check whether import obligations apply.

For a €5,000 website, this means a direct VAT recovery of €1,050 — a cash flow benefit that many entrepreneurs overlook.

Ongoing Costs: Directly Deductible

Beyond the one-off development costs, all ongoing website expenses are fully deductible as business expenses in the year of payment. These do not need to be capitalised or depreciated.

This includes monthly hosting and domain name registration, SSL certificates and security services, software licences for CMS and plugins, regular maintenance and technical updates, backup and monitoring services, and content updates and SEO optimisation.

Calculating Concrete Tax Savings

The actual savings depend on your tax rate. For Belgian SMEs meeting the conditions, the reduced corporate tax rate of 20% on the first €100,000 profit applies (art. 215 ITC). Note: from tax year 2027 (financial year 2026), the required minimum remuneration for managing directors increases from €45,000 to €50,000 to qualify for this reduced rate.

Example for an SME (reduced rate 20%) investing €5,000 (excl. VAT) in a website:

• VAT recovery: €1,050 (immediately, via VAT return)
• Digital investment deduction 20%: €200 tax saving (€1,000 × 20% rate)
• Depreciation over 3 years: €333 tax saving per year (€1,667 × 20%)
• Total tax benefit over 3 years: €2,250

At the standard rate of 25%:

• VAT recovery: €1,050
• Digital investment deduction: €250
• Depreciation: €417 per year
• Total over 3 years: €2,550

The net investment after all tax benefits is therefore only €2,750 to €2,450 for a €5,000 website.

Documentation: What Does the Tax Authority Require?

Proper documentation is essential. The tax authority can always request proof for business expenses. Always retain original invoices with correct VAT details, proof of payment via bank transfer (no cash), contracts or quotes with clear work descriptions, project documentation supporting the business purpose, and form 275U (annex to the corporate tax return) if you apply the investment deduction.

Redesign versus Maintenance: The Difference

The tax treatment depends on the nature of the change, not merely the amount.

A fundamental change or improvement — such as a complete redesign with new functionality, adding a webshop to an existing informational site, or migrating to a new platform — is treated as a new investment. You capitalise and depreciate again.

Maintenance and adjustments — such as text updates, security patches, minor design tweaks, or plugin updates — are ongoing expenses that you deduct directly in the financial year.

The CBN (Commission for Accounting Standards) is clear on this: only expenditure leading to a fundamental change or improvement of the intangible fixed asset qualifies for capitalisation.

Common Mistakes

Mistake 1: Booking everything directly as an expense. Fully expensing a €5,000 website in year one is incorrect from an accounting perspective if it constitutes an investment. You also miss out on the investment deduction.

Mistake 2: Forgetting the investment deduction. Many entrepreneurs are unaware they can deduct an additional 20% on top of the depreciation for digital investments. Discuss this with your accountant.

Mistake 3: No distinction between business and private. For mixed use (e.g., sole proprietorship with a partially private website), you must correctly document the business percentage and apply it consistently.

Mistake 4: Not completing form 275U. The investment deduction must be explicitly claimed via the correct form with your tax return. No form means no deduction.

Mistake 5: Informing your accountant too late. Discuss website investments with your accountant beforehand, so invoicing and bookkeeping are set up correctly from the start.

Frequently Asked Questions

Can I deduct website costs as a sole proprietor?

Yes. As a sole proprietor, you depreciate the website through your personal income tax return. The investment deduction and VAT recovery also apply, provided you are VAT-liable and the website serves a business purpose.

Do I always have to depreciate a website?

Yes, a website is an intangible fixed asset that you capitalise and depreciate over its economic useful life. Only ongoing maintenance and minor adjustments are directly deductible as expenses. There is no fixed monetary threshold in Belgium below which you may directly expense an investment.

What is the ideal depreciation period?

In practice, 3 years is most common for websites and software. This must correspond to the expected economic useful life and be applied consistently. Consult your accountant.

Does the digital investment deduction apply to a webshop?

Yes. Webshops, e-commerce platforms, and digital payment systems explicitly qualify for the enhanced digital investment deduction of 20% (source: VLAIO).

Are hosting and maintenance costs also deductible?

All ongoing website costs are fully deductible as business expenses in the year of payment. You do not need to capitalise or depreciate these.

Where can I find more information?

The official sources are the FPS Finance website for the investment deduction, VLAIO for the subsidy database, and the advisory notes of the Commission for Accounting Standards for accounting treatment.