Filing a tax return as a self-employed person? This is the case with deductible business expenses ๐ผ
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It's reporting time again! As an independent entrepreneur, you give up your profit from the company. But... before you do that, you can deduct your business expenses first. How that works, and what you can or should not deduct? We have listed it clearly for you.
๐งพ What are deductible business expenses?
If you have your own business, you incur costs. Think of software, equipment, or a workplace. Costs that you incur for and within your company are usually business deductible โ and so they lower your profits. That means: paying less tax.
๐ Please note: You cannot deduct costs incurred for private use. Even if something is partly business, you can only specify the business part.
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โ Here are the rules:
- Only needed for your business? Then deductible.
Think about things, services or subscriptions that you need to do business. - Personal expenses? Non-deductible.
A hairdresser visit or gym are private, even if you want to look representative of customers ๐ - Assets under โฌ450?
You can deduct it all at once. - More expensive than โฌ450?
Then you depreciate the amount in several years (for example, a โฌ1,200 laptop). - Startup costs?
Yes! You can also deduct the costs you incurred before you officially started your business, such as market research or advice. - Include VAT?
- Can you claim a refund of the VAT? Then you deduct the costs without VAT.
- Can't you claim a refund of the VAT? Then you can deduct the costs with VAT.
- Keep your receipts!
You must be able to demonstrate that the costs are business and have actually been incurred.
๐ See the full overview of deductible business expenses at belastingdienst.nl.
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๐ Addition: private use of company car
Do you also use a car registered to your company privately? Then you will have to deal with addition. This means that you have to deduct part of the car costs for private use.
How much that is depends on:
- the catalog value of your car
- COโ emissions
- and when your car first hit the road
๐ Less than 500 private miles per year? Then you can be exempt from adding, provided you can prove this with a conclusive trip registration.
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๐ Need help? You are not alone
The tax authorities can help you in several ways:
- Go to belastingdienst.nl/entrepreneurs for additional explanation
- Call toll-free Tax Phone Business Owners: 0800 โ 0543
- Starters can also chat via the live chat for starters
Do you prefer help from a professional? You can also outsource your return to an accountant or tax advisor.