We paid 30,000 € to have a website built, how do we write it off in Germany?

Your advisor is right, the German tax office (Finanzamt) will never let you deduct a 30k Euro ordering portal in a single lump sum. During an audit, they will immediately reclassify it as a capital asset and slap you with back taxes. The cleanest way is to break down the invoice properly from the start.

We had a similar B2B portal built for 26,000 € back in 2022 in Düsseldorf. Our advisor had the agency split the invoice into two: 16,000 € for software development was put on a 3-year depreciation schedule, while the remaining 10,000 € for content prep and integration support was expensed right away that year. We had no issues during our audit.

The legal distinction here comes down to what qualifies as an intangible asset. If it had been developed completely in-house, capitalization would be optional or restricted, but because it was acquired externally, capitalizing it on the balance sheet is a statutory requirement. It far exceeds low-value asset thresholds, so depreciation is unavoidable.

The Finance Ministry's circular on digitalization reduced the useful life of computer hardware and software to 1 year. Many advisors still apply the old 3-year table simply out of habit. Definitely remind your tax advisor of the updated digital asset depreciation rules and ask if your portal qualifies.

Contact the agency immediately and do not let them leave the invoice as a single line reading "website development." Have them split it into software licensing, graphic design, copywriting, and annual maintenance. The more granular the invoice, the more leeway your accountant has to write it off as an immediate expense.

Under applicable tax regulations, expenditures meeting the criteria of fixed assets must be capitalized in accordance with the accrual accounting principle. Aligning your depreciation schedule with your corporate balance sheet and profitability targets under the guidance of your tax advisor will eliminate the risk of back taxes in a future business tax audit.

whatever you do don't lump hosting, domain and monthly maintenance into that 30k. those are ongoing operating expenses so they get expensed directly every month, nothing to do with depreciation.

Here's how it went for us. I mean changing habits is harder and more expensive than setting up a system.

If I were you, I'd go this route.

Three different views emerged, they all complement each other. Processes without records never improve, because you don't know what to fix.

When making a decision first look at what data you have on hand. Correct me if I'm wrong.

I didn't know that.

Here's how it went for us. When making decisions, write down the worst-case scenario too, not just the best.

This is my opinion, I'm not claiming it's absolute truth.

I don't think this advice fits everyone. The harder it is to reverse a decision, the slower you should make it.

This thread is archived.

Let me speak from the other side; I'm on the supplier side. The harder it is to reverse a decision, the slower you should make it.

If you post the result here, it will help others too.

Great work.

I've been down this road, let me tell you. Don't hesitate to ask; those who don't ask always pay more.

We need to make a distinction here. When you try to change everything at once, nothing settles.

If you get three different answers on a topic, the question was asked wrong. If I were you, I'd go this route.

to get into the details: Start with a small trial; don't commit to everything at once.

just leaving this note it might be useful.