The Second-Hand Software License in CAPEX Mode

The Differences Between CAPEX and OPEX

CAPEX and OPEX are two notions related to how the expenses made by the company will integrate into its financial and accounting balance sheet. OPEX (Operating Expenses) corresponds to operating expenses. CAPEX (Capital Expenditure) corresponds to investment expenses. These two terms, CAPEX and OPEX, concern different categories of expenses depending on their use and management rules.

Difference Between Operating and Investment Expenses (OPEX/CAPEX)

Operating expenses (OPEX) or running expenses are the company's current expenses to ensure the functioning of services. These expenses include the purchase of goods and raw materials, purchase of administrative supplies, rentals, subcontracting, social charges, maintenance, repairs, lease royalties... These expenses appear as charges in the company's income statement. Therefore, they do not affect its borrowing capacity and are deductible from the tax result.

Unlike operating expenses, investment expenses (CAPEX) correspond to the acquisition of a durable asset. This can be a tangible investment like real estate, production tools, IT equipment... It can also be an intangible investment like patents, a business asset, licenses. Finally, it can be a financial investment with the purchase of shares, bonds... These investment expenses ensure the company's development in the short and medium term. From an accounting perspective, they enhance the value of its assets (company's assets).

Is Software Licensing an OPEX or CAPEX?

The evolution of technologies means the question is not settled. The development of the cloud and the provision of numerous SaaS applications to companies are changing the game. These new technologies allow companies to allocate their expenses differently depending on their technological choices and financial and accounting strategy. In this context, your software license is an investment expense (CAPEX) and can benefit from amortization rules if:

The investment amount is equal to or greater than €500.

The application is installed locally on your company's servers and client workstations (on-premise mode).

The data is hosted on your infrastructures.

However, if the licenses are in SaaS mode (Software as a Service, based on cloud technology), it is then an operating expense (OPEX) financed in rental mode.

The Second-Hand Software License is an Investment Expense

The professional software license acquired on the secondary market is an investment expense (CAPEX). European legislation legally regulates transactions carried out on the secondary market of software licenses. It prohibits the resale of rental licenses and SaaS-type subscriptions, which would then be an operating expense (OPEX). These licenses are not eligible because usage rights are time-limited and linked to subscription payment. SaaS licenses also include an access right to the publisher's servers, which is non-transferable.

Sustainably Invest with Softcorner's Second-Hand Licenses

As the European leader in B2B second-hand software license sales, Softcorner allows you to implement an innovative, economical, and efficient management of your software portfolio. By integrating the secondary market, you can acquire second-hand software licenses that comply with legislation and are complete (executables, license keys, documentation). They will also allow you to equip your employees more cheaply (up to 80% reduction depending on licenses).

Softcorner also gives you the opportunity to sell your unused software following a reduction in the number of users, migration of your applications, or technological changes. Uninstalling licenses allows you to free up resources and optimize your infrastructure. The secondary market provides you with greater flexibility and security, allowing you to adapt your software inventory while controlling your investment expenses (CAPEX).