Must I charge VAT on recharged advertising budgets?

There is no single answer: it depends on how costs are recharged and whether expenditure is incurred in the client’s name and on their behalf. Discuss and document this with your accountant; pass-through treatment is not automatic.

Can I change the budget each month?

Yes. Your fixed fee can run through a subscription while you adjust each invoice’s budget line to actual spending.

Can I store Google and Meta invoices in ProFactuur?

Yes, process them as purchase documents in your Inbox or convert them to UBL with the free converter. They count towards your costs only after your approval.

Web designers and marketers

Clearly separate advertising budget and management fees

Your agency manages the client’s Google Ads or Meta budget and charges a management fee. Combining them on one line creates confusion. Separate invoice lines make the distinction clear.

Why mixing budget and fees causes problems

If a client pays €2,150 against a single Advertising management line, they cannot tell what went to Google and what paid for your work. That creates accounting questions and makes your fee look inflated during price discussions. Separate budget and fee lines reveal the split immediately.

Recharged advertising costs are not automatically VAT-free pass-through expenses. Treatment depends on the agreement and accounting: recharging your own costs differs from expenditure incurred in the client’s name and on their behalf. Agree and document the correct treatment with your accountant.

In ProFactuur

How to do it, step by step

1
Create separate products
Create products such as Google Ads management, monthly and Google Ads advertising budget, recharge.
2
Use separate invoice lines
Add your fee first, followed by the budget, each with its own amount and clear description. Include the period and platform in the budget description.
3
Use a subscription for fixed amounts
Put a fixed monthly fee in a subscription. Add or adjust the variable budget on each invoice.
4
Keep platform evidence
Retain Google and Meta invoices or statements in your accounting records. Process PDFs in your Inbox or convert them with the free PDF to UBL converter.

Example

Example: monthly invoice with budget and fee

An agency invoices a Belgian online shop. The management fee is subject to 21% VAT. The VAT treatment of the recharged budget has been agreed with the accountant beforehand; it is not automatically exempt.

Google Ads and Meta management fee, monthly	€650.00
21% VAT on the management fee	€136.50
Google Ads advertising budget, March recharge	€1,000.00
Meta advertising budget, March recharge	€500.00
Amount due	€2,286.50

The client sees €1,500.00 in platform spending and a €650.00 fee. The budget’s VAT treatment follows the arrangement confirmed with the accountant; this illustrative total is not a general rule. If you qualify for the Belgian small business VAT exemption, you do not charge VAT. Learn about the Belgian small business scheme

Agree the arrangements beforehand

Specify in your quote or contract whether the client pays the budget to you upfront, you advance the spending, or the client pays platforms directly and you invoice only your fee. These arrangements produce different invoices and VAT treatments.

A fee subscription keeps fixed income clear while budgets vary. Reports shows revenue per client. Business invoices go through Peppol, with budget and fee lines remaining separate in the UBL file for the client’s accounting software.

Frequently asked questions

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