Are website costs tax deductible in one go, or do you have to depreciate them over a few years? Usually, building a new website is an investment you depreciate, while running costs like hosting and maintenance are expenses you deduct straight away. But the details depend on your situation.
This article explains the broad picture, so you can go to your accountant well prepared. It is not tax advice. Rules and amounts can change. Ask your accountant or the Dutch Tax Administration (Belastingdienst) what applies in your case.
Expense or investment: what's the difference?
Your bookkeeping separates expenses from investments. That decides when a cost lowers your profit.
- Expenses. Things you use up in the same year, like a monthly subscription. You usually deduct these from your profit straight away.
- Investments. Things you use for several years, like a laptop or a company van. These go on your balance sheet and you depreciate them: you spread the cost over the years you use them.
You usually use a website for a number of years. That's why building one is often treated as an investment. Because a website isn't physical, it counts as an intangible fixed asset.
Watch the difference between buying and renting. With a website builder or software you pay for monthly, you have a subscription. That's usually just an expense. If you have a custom website or web application built that you own, it's more likely an investment. So how you've set up your website matters.
Can you deduct website costs straight away?
Small business assets have a threshold: if something costs less than €450 excl. VAT, you can book it as an expense straight away. If it costs more, you generally depreciate it. A custom website is usually above that line.
There are grey areas. Is a cost a major upgrade that will keep your website going for years, or a small change? A new page or a minor tweak is often just an expense. A complete rebuild is more likely an investment. Show the invoice to your accountant and ask how they'll book it.
Depreciating website costs: how it broadly works
When you depreciate, you spread the purchase price over the expected useful life. A simplified example with a round number: if you have a website built for €3,000 excl. VAT and expect to use it for five years, you book part of that €3,000 as an expense each year.
- Useful life. How long do you expect to use the website? Websites often last a few years before they need a refresh.
- Residual value. Usually zero for a website, as you can't sell it on.
- Start date. You start depreciating once the website is in use, so from the day it goes live.
- Rules. There are tax limits on how fast you're allowed to depreciate. Your accountant knows them.
Depreciation sounds like a disadvantage, because you don't deduct the cost in one go. But it spreads your profit more fairly over the years in which the website brings you customers.
Which website costs are usually tax deductible right away?
Many costs around your website are ordinary business expenses in the year you incur them:
- Hosting and your domain name.
- Maintenance plans, updates and security.
- Small changes and new copy.
- Subscriptions to tools, such as a newsletter platform.
- Online marketing, such as SEO, Google Ads and social media, including ad budget.
- Licences you pay monthly or yearly.
Keep every invoice and make sure it's in your company's name. That makes your accountant's job a lot easier.
If you also use the website for something other than your business, like a personal blog, that can affect what you're allowed to deduct. It doesn't come up much for most business owners, but tell your accountant if it applies.
Reclaiming VAT on your website
If you're registered for VAT, you can usually reclaim the VAT on building and maintaining your website as input tax in your VAT return. That's separate from whether you depreciate. You reclaim the VAT in the period of the invoice.
If you use the small business scheme (KOR), you don't charge VAT to customers. That also means you can't reclaim VAT. For you, the price incl. VAT is the real price. That's why it helps when a quote shows both amounts.
Tips for your bookkeeping
- Ask for an invoice with a clear description: what is build and what is maintenance or marketing? Then your accountant can process it correctly.
- Keep one-off and recurring costs separate.
- Write down the go-live date. You need it to start depreciating.
- Ask your accountant whether an investment allowance might apply, such as the small-scale investment allowance (kleinschaligheidsinvesteringsaftrek).
- Factor tax into your planning. An investment in late December or early January can change the year in which you book it.
- Also look at schemes for digitalisation. More on that in grants for digitalisation for SMEs.
Clear website costs at Violexa
At Violexa we always show prices excluding and including VAT, so you can see straight away what it means for you. A custom website starts from €1,799 excl. VAT (€2,177 incl. VAT) per project. That's a one-off amount for design, build, a design that works on every screen, basic SEO and Google Analytics, a CMS connection and a walkthrough. Larger projects get a fixed price in writing.
Maintenance is a separate, recurring amount: Silver €179 (€217 incl. VAT), Gold €299 (€362 incl. VAT) or Platinum €699 (€846 incl. VAT) per month excl. VAT. The first 12 months are fixed. After that you can cancel monthly by email with one month's notice. That keeps build and maintenance neatly apart. You'll find every amount on our pricing page. Want to know what other costs are involved? Read what website development costs.
Want to know what your website will cost, so you can plan it with your accountant? Book a free quickscan. In 30 minutes, online or on site, we talk through what you need. Afterwards you get short written advice with a price indication, with no obligation.
Frequently asked questions
How do I handle website costs for tax as a freelancer (zzp'er)?
You usually depreciate the build of a website over a few years, because you use it for longer. Hosting, maintenance and marketing are usually expenses you can deduct straight away. Check with your accountant what applies in your situation.
Over how many years do you depreciate a website?
That depends on the expected useful life. Many websites last a few years before they're refreshed. There are tax rules on how fast you may depreciate, so agree the period with your accountant.
Can I reclaim the VAT on my website?
If you're registered for VAT, you can usually reclaim the VAT on building and maintaining your website as input tax. If you use the small business scheme (KOR), you can't.
Is website maintenance tax deductible?
Maintenance, updates, hosting and small changes are usually ordinary business expenses that you deduct in the year you incur them. A major overhaul may be treated differently.
