Which expenses can you deduct as a sole proprietor in Belgium?
Deductible expenses are those necessary for your professional activity, such as transport, administration, networking, equipment, and certain business gifts.
Deductible expenses for self-employed professionals The complete guide
28/05/2025
When starting your business, you naturally want to make the most of the available tax advantages. One of the most effective ways to reduce your tax burden is to correctly apply the rules on deductible expenses. This article outlines the key principles.
General principle: professional use
The rule is simple: expenses incurred for your professional activity are tax deductible.
If you use something both privately and professionally, only the professional portion is deductible. You can determine this percentage yourself, as long as you can justify it in case of a tax audit.
The most common deductible expenses
Transport costs
Public transport is 100% deductible for professional travel (including 6% VAT).
Car expenses are partially deductible, depending on:
the professional-use percentage (based on mileage tracking or a reasonable estimate);
the CO₂ emissions of the vehicle;
the year of purchase.
| #protip |
|---|
| Electric cars purchased before 2027 are 100% tax deductible. Bicycle allowance: if you use a bike for your activity, you can grant yourself €0.36/km (2025) for business travel. |
Workspace and home office
Do you work partly from home? Then part of your housing costs can be deducted, such as:
water, electricity, and heating
internet and telephony
property tax
mortgage interest (professional portion)
| #protip |
|---|
| The deductible portion is usually based on surface area. Example: 15 m² office in a 150 m² home → 10% deductible. |
Telecom and IT
Your smartphone and phone subscription are deductible based on professional use (typically 70%–75% for full-time self-employed).
The same applies to internet costs (higher percentages require justification).
Computers and IT equipment are considered investments and are depreciated over several years.
Professional expenses
Some expenses are fully deductible, including:
your PIA Go! subscription (including VAT)
professional insurance (income protection, bankruptcy insurance, turnover insurance)
your supplementary pension (PLCI), deductible up to 8.17% of income from three years ago
a website and domain name used for your business
Representation expenses
Business meals are 69% deductible (VAT is not recoverable).
Business gifts are 50% deductible. VAT is fully deductible for gifts under €50 per person.
Client entertainment costs are 50% deductible.
| Important: VAT vs personal income tax |
|---|
| VAT deduction rules are not always the same as personal income tax rules! An expense may be fully deductible for income tax, but only partially—or not at all—deductible for VAT, or vice versa. |
An expense may be:
fully deductible for income tax, but
partially or not deductible for VAT.
Examples:
Car expenses → VAT recovery limited to max. 50%
Restaurant expenses → no VAT recovery, but 69% deductible for income tax
Each invoice must include your VAT number to recover VAT.
Special cases: non-deductible expenses
Some expenses are never deductible, even if they seem business-related:
ordinary clothing (even if used only for work)
fines (except certain proportional VAT penalties)
training for a future activity not yet started
PIA Go! helps you apply tax rules correctly
Tax rules can quickly become complex.
PIA Go! helps you:
correctly categorize your expenses
apply the right deduction percentages
stay fully compliant with tax regulations
Want to optimize your deductible expenses?
Schedule a no-obligation video consultation today.
FAQ
Are transport costs deductible?
Yes. This includes car expenses, public transport, parking, and cycling. Deductibility depends on usage and vehicle type.
Are business gifts deductible?
Yes, but partially (usually 50%). Specific rules apply regarding value, documentation, and recipient.
Which administrative costs are deductible?
Examples include subscriptions, office supplies, accounting software, postal costs, and administrative tools—provided they are professionally justified.
How do you prove the professional nature of an expense?
You must show that the expense is linked to your activity. This is typically done through:
invoices or receipts in your company’s name
a clear connection to your professional activity
If in doubt, PIA Go! can help you record your expenses correctly.
Written by Charlotte Backelandt , Marketing & Content Specialist,
reviewed by Tom Castelein, Personal Income Tax Expert.
reviewed by Tom Castelein, Personal Income Tax Expert.