04/06/2025
As a self-employed individual, you naturally want to manage your taxes smartly and optimize as much as possible from a fiscal perspective. But how does it actually work? The basic rule is simple: all costs you incur for your professional activity are deductible. However, as with many tax topics, there are some nuances. We’ve listed the key points so you can make the most of your deductions.
Do you use certain items both privately and for your business? Then you can only deduct the professional portion. You determine the percentage yourself, but it’s best to keep it realistic. In the event of an audit, you must be able to justify your choice. Pro tip: for a home office, you can calculate the percentage based on the surface area of your office compared to your entire home.
Not all professional expenses are 100% deductible. For some categories, the tax authorities impose specific limits. In addition, VAT rules and personal income tax rules do not always follow the same logic.
• Car expenses are a typical example. For vehicles purchased or leased before 2018, a flat rate of 75% of professional use applies to general car costs such as road tax, maintenance, insurance, roadside assistance and fuel. For vehicles from 2018 onwards, deductibility depends on CO₂ emissions. For VAT, you can deduct a maximum of 50% of the total VAT on these costs, even if the vehicle is used 100% professionally.
• Parking costs follow the same rules, although you do need an invoice to recover VAT. Also interesting: the rental of parking spaces for staff, customers or suppliers is 100% deductible, as are costs for constructing parking areas or fuel tanks. Electric vehicles benefit from a more favorable regime: vehicles purchased before 2027 are in principle 100% deductible.
• Business gifts are 50% deductible for income tax purposes. For VAT: gifts under €50 per recipient are 100% deductible; above that, 0%. Promotional items with your company logo are fully deductible if their value is limited.
| Did you know… |
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| … there is an important tax difference between business gifts and promotional items? Business gifts are not related to your core business (e.g. a software company giving a bottle of wine), while promotional items are linked to your products or services (e.g. a hairdresser giving a free bottle of shampoo). The difference matters: promotional items are usually 100% deductible, while business gifts are only 50%! |
• Sponsorship with a clearly demonstrable return is 100% deductible for income tax purposes. Note: it must be a genuine business agreement, not a voluntary donation. For VAT, the same rules apply as for business gifts.
• Restaurant and reception expenses (such as events) are only 50% deductible. For VAT, this is usually 0% deductible.
• Fines are generally not deductible. There is one exception: proportional VAT fines (calculated as a percentage of the VAT balance) are 100% deductible. Fixed VAT fines (a fixed amount) remain non-deductible.
• Training costs are fully deductible (including VAT) if they relate to your current profession. Courses for a future new profession are not deductible.
• Work clothing is generally not deductible, unless it concerns mandatory professional clothing such as safety equipment or uniforms. In that case, both the purchase and VAT are 100% deductible.
• Taxes are generally not deductible, but there are exceptions: property tax (for the professional portion) and municipal and provincial taxes are fully deductible.
At PIA Go!, we understand that tax rules can be confusing. Our PIA accountants help you correctly categorize your expenses and automatically calculate the correct deduction percentages so you can make the most of all tax advantages.
Want to know how we help you optimize your deductible expenses?
Schedule a free video call today.
What does PIRVE mean and why is it important for self-employed individuals?
PIRVE stands for "Professional Investments and Recoverable Fixed Operating Expenses". These are costs you incur for professional purposes that you can fully or partially deduct from your income, such as car expenses, work equipment or a laptop.
Which car expenses can you deduct as a self-employed individual?
You can partially deduct fuel, maintenance, insurance, road tax and depreciation of your vehicle (or lease). The exact deductible amount depends on the use (private vs. professional) and the CO₂ emissions of your vehicle.
Are restaurant and representation expenses tax deductible?
Yes, but only partially. Restaurant expenses are usually 69% deductible. They must be linked to a professional activity, such as a lunch with a client or business partner. Always keep proof of payment and the reason for the expense.
Can you deduct sponsorship as a business expense?
Sponsorship can be tax deductible if there is a clear professional benefit in return, such as visibility or name recognition. A sponsorship to a local sports club, for example, is only deductible if your business effectively gains promotional value from it.
How do you know if an expense is sufficiently professional to be deductible?
The golden rule: you must be able to demonstrate that the expense was necessary for your self-employed activity. If in doubt, a PIA accountant can help you assess and correctly record expenses according to tax rules.
