A laptop, telephone subscription, professional training or business trip: entrepreneurs often ask which expenses they can claim. The answer depends on the business purpose, documentary evidence and the applicable legal restrictions.
Paying with a business bank card does not automatically make an expense fully deductible. Income tax treatment and VAT recovery are different questions.
When does an expense qualify as a business expense?
As a general principle, an expense must have a sufficiently clear connection with professional activity and meet the relevant statutory requirements. You should be able to show that the expense was genuinely incurred and relates to the business.
The tax and accounting treatment may differ for a sole trader and a company. Avoid generic assumptions such as “this purchase is always 100% deductible”. See the Belgian tax authority’s guidance on professional income and actual expenses.
Which records should you keep?
- Invoices or purchase documents: showing the supplier, transaction and the correct business details where required.
- Payment evidence: useful for establishing when and how the expense was paid.
- Business context: the reason for the purchase, relevant job or person using it.
- Evidence of professional use: especially where goods or services are also used privately.
- Contracts or agreements: relevant to recurring services, leases, financing and other commitments.
A bank transaction alone does not necessarily replace the required invoice or other evidence. Keep original digital records securely and in an organised way.
What if something is used privately as well?
Think of a telephone, broadband connection, vehicle or home workspace. Private and business use may need to be apportioned using a reasonable, substantiated approach. Some types of spending are also subject to specific statutory limits.
Agree how usage will be recorded rather than choosing an arbitrary percentage later. VAT recovery can have different limits for mixed use.
Can an investment be deducted immediately?
Not necessarily. Equipment expected to be used over several years may need to be treated as an asset and depreciated rather than fully expensed in a single year. The correct accounting and tax treatment depends on the item, the business and relevant rules.
Business expense deductions and VAT deductions are not identical
An expense may be wholly or partly allowable for income tax without creating the same right to recover VAT. VAT rules must be assessed separately. See our VAT return checklist and the Belgian tax authority’s VAT guidance.
Common mistakes when recording expenses
- Treating private purchases as entirely business-related.
- Trying to recover invoices months after the transaction.
- Assuming VAT deductibility and income tax deductibility are the same.
- Keeping no explanation for exceptional or mixed-use expenses.
- Assuming every purchase can be expensed in full in the year of acquisition.
Frequently asked questions
Can I deduct a laptop bought for my business?
It may qualify for professional use, but the specific treatment depends on how it is used and whether it is recognised as an expense or a depreciable asset.
Is paying with a business card enough?
Not necessarily. Retain the relevant invoice and documentation supporting the professional purpose.
Can I also recover the VAT?
That requires a separate assessment under VAT rules and may involve restrictions.
Unsure about an expense?
Discuss uncertain purchases before recording them. Verheyen Accountants supports Belgian entrepreneurs with tax questions and reliable bookkeeping. Contact us for a review of your circumstances.
Sources: Belgian Federal Public Service Finance, professional income and expenses and VAT recovery. Rules depend on the facts and current law.