With the penetration of distributed energy resources (DERs), new network challenges arise that limit the hosting capacity of the network, which consequently makes the current expansion-planning models inadequate. Smart inverters as a promising tool can be utilized to enhance the hosting capacity. Therefore, in response to technical, economic, and environmental challenges, as well as government support for renewable resources, especially domestic solar resources located at the point of consumption, this paper is an endeavor to propose a smart-inverter-based low-voltage (LV) distribution expansion-planning model. The proposed model is capable of dynamic planning, where multiple periods are considered over the planning horizon. In this model, a distribution company (DISCO), as the owner of the network, intends to minimize the planning and operational costs. Optimal loading of transformers is considered, which is utilized to operate the transformers efficiently. Here, to model the problem, a mixed-integer nonlinear programming (MINLP) model is utilized. Using the GAMS software, the decision variables of the problem, such as the site and size of the installation of distribution transformers, and their service areas specified by the LV lines over the planning years, and the reactive power generation/absorption of the smart inverters over the years, seasons, and hours are determined. To tackle the operational challenges such as voltage control in the points of common coupling (PCC) and the limitations in the hosting capacity of the network for the maximized penetration level of PV cells, a smart-inverter model with voltage control capability in PCC points is integrated into the expansion-planning problem. Then, a two-stage procedure is proposed to integrate the reactive power exchange capability of smart inverters in the distribution expansion planning. Based on the simulations of a residential district with PV penetration, results show that by a 14.7% share of PV energy generation, the loss cost of LV feeders is reduced by 28.3%. Also, it is observed that by optimally making use of the reactive power absorption capability of the smart inverters, the hosting capacity of the network is increased by 50%.