Having a website built: deduct the costs at once or depreciate?
Written by Ilias Aarrass6 min read · Published on · Last reviewed on 
In short
If your website costs more than € 450 excluding VAT it is an asset you capitalise and depreciate at up to 20 percent a year; hosting, domain name and maintenance are deducted at once.
- You deduct the VAT on the build in one go in the period of the invoice, even though you depreciate over five years.
- A complete rebuild is a new investment; you write off the remaining book value of the old site that year.
- Your own hours are not deductible, but they do count towards your 1,225 hour criterion.
- If you invest between € 2,901 and € 71,683 in a year, the website can count towards the 28 percent investment deduction.
For many freelancers the website is the business card through which clients find them. If you have it built by a web designer, you quickly spend a few thousand euro. Then the question arises: do you deduct that amount in one go, or depreciate it over several years? And what about hosting, your domain name, maintenance and the VAT on the invoice? This article explains where the line between deducting at once and capitalising lies, which running costs simply go into your profit and loss account, and how it all works out in a worked example.
Deduct at once or capitalise?
For the tax authorities, a website you have built is a business asset: you use it in your business for several years. If the build costs more than € 450 excluding VAT, you capitalise it on your balance sheet and depreciate it, just like a laptop or a camera. If you stay below that, for example because you put together a simple site in a website builder yourself, you book the costs straight away as an expense. The general framework is covered in capitalising or deducting at once.
For tax purposes you depreciate at most 20 percent of the purchase cost a year, so over at least five years. A website usually has no residual value, because after a few years it is outdated both technically and in appearance. The purchase cost generally includes everything needed to deliver the site: design, build, links to your booking or payment system, and copy or photos created specifically for the launch. How depreciation itself works is explained in depreciation: straight-line or declining.
| Cost item | Income tax | VAT |
|---|---|---|
| Design and build above € 450 | Capitalise, depreciate at most 20% a year | 21%, deductible as input tax |
| Small changes and updates | Deduct at once as maintenance | 21% |
| Hosting and domain name | Deduct at once | 21%, or reverse charged with a foreign supplier |
| Website builder subscription | Deduct at once | Often reverse charged, as many providers are based abroad |
| Complete rebuild or redesign | New investment, capitalise again | 21% |
| Ads and search campaigns | Deduct at once as advertising | Often reverse charged with Google or Meta |
Hosting, domain name and maintenance
The running costs of your website are ordinary business expenses you deduct straight away. Think of hosting, your domain name, a security certificate, a maintenance contract with your web designer and annual licences for themes or plug-ins. You book them in the year they relate to. A domain name you register a few years ahead for a small amount need not be split out; it makes hardly any difference to your profit.
The difference between maintenance and improvement is trickier. Updates, security patches, new copy or an extra page are maintenance and therefore deductible at once. If after a few years you have the site completely redesigned and rebuilt, that is a new investment you capitalise again. You write off the remaining book value of the old site in full in that year, because you no longer use it.
The VAT on your website
A Dutch web designer charges 21 percent VAT. You deduct that VAT as input tax in the return for the period in which the invoice falls, and you do so in one go, even if you depreciate the website over five years for income tax. The condition is a correct invoice in your business's name; which details it must show is explained in purchase invoice requirements.
Many website builders, hosting companies and theme makers are based abroad and invoice without Dutch VAT. If you have given them your VAT ID, the VAT is reverse charged to you and you account for it yourself in your return. How that works per box is set out in VAT on invoices from Google, Meta and other foreign services.
Worked example: a € 3,000 website
In January Daan has a new website built for € 3,000 excluding VAT. On top of that he pays € 180 a year for hosting and his domain name. The site goes live straight away, so he depreciates from January. Below you can see what ends up in his profit and his VAT return.
If your total investments in a year fall between € 2,901 and € 71,683, a website can count towards the small-scale investment deduction of 28 percent. Whether that applies to your site is best checked with your bookkeeper in advance. If you are a starter, you can also use discretionary depreciation and set the pace of depreciation yourself.
Worked example: € 3,000 website plus hosting
- Website build, excluding VAT
- € 3,000
- 21% VAT, reclaimed in the first quarterly return
- € 630
- Depreciation per year (20%, no residual value)
- € 600
- Hosting and domain per year, deductible at once
- € 180
- Website costs in your profit per year
- € 780
Result: Five years of € 780 in costs in your profit and the € 630 VAT back straight away. If the site counts towards the KIA, the first year brings an extra € 840 deduction.
Frequently asked questions
May I deduct a € 1,500 website in one go?
As a rule, no. Above € 450 excluding VAT it is a business asset you depreciate at up to 20 percent a year. Only as a starter with discretionary depreciation can you choose the pace yourself.
What if I build my website myself?
You cannot deduct your own hours, because as a sole trader you pay yourself no wages. The actual costs are deductible: the website builder subscription, themes, plug-ins, photos and hosting. The hours do count towards your hours criterion.
My website was replaced after only two years. What now?
Then you write off the remaining book value of the old site as costs in that year. For the new site you start fresh depreciation from the moment it goes live.
Do web copy and photos belong to the purchase price?
If you have them made specifically for the site's delivery, they generally count. Blog posts and photos you add later are ordinary costs you deduct straight away.
Sources
- Depreciation of at most 20 percent a yearBelastingdienst · belastingdienst.nl
- Small-scale investment deduction 2026Belastingdienst · belastingdienst.nl
- The € 450 floor per business assetBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
