Can I deduct a fine as a professional expense?
No. Fines are never tax-deductible, even if they result from a business trip or a mistake related to your activity.
Have you received a fine? Here’s how to record it in PIA Go!
08/09/2025
A traffic fine issued in your company’s name, a penalty for a late VAT return, or another administrative sanction… it can happen. In that case, one question often comes up: how should you correctly handle this expense in your accounting? The answer is simple, but the tax rule that applies is specific. Here’s what you need to know.
Principle: a fine is never deductible
A fine can never be deducted as a professional expense. This rule applies in all cases. Even if the fine is linked to a business trip or a mistake made in the course of your activity, it cannot be deducted.
The reason is clear: tax authorities want to prevent part of the penalty from being recovered through a tax reduction.
Should fines then be left out of your accounting?
No. A fine must still be recorded in your accounting.
Every financial transaction must be recorded, even if it has no impact on your taxable result. If you pay a fine from your business account, this outflow must appear in your accounting records.
The difference lies in how you record it.
How to record a fine in PIA Go!
In PIA Go!, a fine should not be recorded as a purchase, but as another payment.
The process is very simple:
• go to the “Payments” menu
• click on “New payment”
• select, under “Category”, the option “Other, not included in the profit and loss account”
• enter the amount and description
This way, the payment is correctly recorded, your bank balance remains accurate, and the fine stays outside your profit and loss account.
Fines vs late payment interest: don’t confuse them
There is often confusion between fines and late payment interest. However, their tax treatment is different.
Fines are administrative penalties. They are never deductible. Late payment interest, on the other hand, can be deductible.
For example, if you submit your VAT return late, two separate amounts may appear:
• a fine for late submission
• late payment interest on the VAT paid late
The fine is not deductible. The interest, however, is considered a financial expense, similar to loan interest, and can therefore be deducted.
In PIA Go!, this interest should be recorded as a standard purchase, with a description such as “VAT late payment interest”.
PIA Go!: your fines handled correctly
Accounting is not limited to sales and profits. Certain expenses, such as fines, must also be handled correctly.
PIA Go! allows you to record these transactions easily and in compliance, so your accounting remains accurate and complete.
Not sure how to record a specific fine? PIA experts can advise you. The level of support depends on your subscription.
Ready to get started with PIA Go!?
Schedule an appointment today and discover how simple accounting can be.
FAQ
Why are fines not deductible?
Tax authorities want to prevent part of the penalty from being recovered through taxes. Therefore, fines are excluded from professional expenses.
Do I still need to record a fine in my accounting?
Yes. Every payment must be recorded, even if it has no impact on your taxable result.
How do I record a fine in PIA Go!?
Go to “Payments”, click “New payment”, select “Other, not included in the profit and loss account”, enter the amount and description, and save.
Is the treatment of a fine different from a standard purchase?
Yes. A purchase can be a professional expense. A fine never can. That’s why it must be recorded as an “other payment” and not as a purchase.
Is interest related to a fine also non-deductible?
No. Fines are not deductible, but late payment interest is.
What is the difference between a fine and interest?
A fine is an administrative penalty and is not deductible. Interest is a cost due to late payment and can be deducted as a financial expense.
How do I record late payment interest in PIA Go!?
It should be recorded as a standard purchase, for example with the description “VAT late payment interest”.
What happens if I record a fine incorrectly?
Your profit and loss account will no longer reflect reality correctly, and errors may appear in your tax return.
Can PIA Go! help me if I’m unsure?
Yes. The software offers clear categories, and PIA experts can advise you. Depending on your subscription, they can also handle these tasks for you.
Written by Charlotte Backelandt , Marketing & Content Specialist,
reviewed by Tom Castelein, Personal Income Tax Expert.
reviewed by Tom Castelein, Personal Income Tax Expert.