28/05/2025
Do you sometimes recharge costs to your clients? Smart move! But did you know that specific VAT rules apply? If you choose the wrong approach, you may leave money on the table. In this blog, we explain how to structure recharged costs in the most tax-efficient way.
For costs that you recharge to clients and that are linked to the services or products you provide, you apply the same VAT rate as for your main service.
An example: you are a consultant and, in addition to your advisory services, you also recharge travel and restaurant expenses. You then apply the VAT rate of your consultancy services to all these costs (excluding VAT). The original VAT rate on your purchase is not relevant.
| Attention! |
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| Do you recharge costs for purchases on which you did not pay VAT yourself? Even then, you must apply your usual VAT rate (usually 21%) when recharging them to your client. |
Yes, but they are rare. Only if you recharge costs that are completely unrelated to your other services or products may you continue to use the original VAT rate of the purchase. In practice, however, this hardly ever occurs.
1. Recharge VAT on foreign restaurant costs
A special rule applies to foreign restaurant and hotel expenses. Because you cannot recover foreign VAT in Belgium, it is better to recharge the purchase amount including foreign VAT. You then apply your own VAT rate on top of that.
2. Mention domestic restaurant costs separately
Normally, you cannot recover VAT on restaurant expenses. However: if you recharge the costs and mention them separately on the invoice, you may recover the VAT you paid yourself. This only applies to Belgian VAT. In that case, your client cannot recover the VAT.
If you bundle all costs into one total amount, you cannot recover the VAT, but your client can. Therefore, always mention restaurant expenses separately on your invoice to optimise your VAT position.
3. Include car expenses in a global amount
For car expenses, it works exactly the other way around. VAT on car expenses is deductible up to a maximum of 50%. If you mention the costs separately, these limitations remain applicable for both you and your client. By including them in a global amount, your client may be able to recover more VAT.
At PIA Go!, we understand that VAT rules can be complex. That is why our PIA accountants not only help you apply the correct VAT rates, but also provide smart tips on what should or should not be mentioned separately on invoices. This way, you get the most out of your VAT return.
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Which costs can you recharge to your client as a self-employed person?
If you incur costs during an assignment for your client—such as restaurant expenses, parking costs or material purchases—you can generally recharge them. It is important that the costs are professionally justified and directly linked to the assignment.
How do you correctly process recharged costs on an invoice?
You clearly state the costs on the invoice, either separately or included in a total amount. You often add a short description, such as “travel expenses” or “client project costs”. PIA Go! helps you do this correctly and automatically, including VAT.
Do you need to charge VAT on recharged costs as a self-employed person?
In most cases, yes. Even if you could not recover VAT on the original purchase (such as restaurant expenses), you must still charge VAT when recharging the cost to your client. The correct rate depends on your service.
How can you optimise VAT on recharged costs as a self-employed person?
By structuring your recharged costs correctly and preparing your invoice properly, you can recover VAT where possible. Think of car expenses or costs that your client cannot deduct themselves. A good accountant helps you maximise the tax benefit.
What is the best way to recharge costs as a sole proprietorship?
The best approach is to recharge costs transparently and correctly through your invoice. Use a digital system such as PIA Go! that automatically applies the correct VAT and have an accountant review it. This ensures a professional and tax-efficient approach.
