Business purpose is decisive
An expense is deductible to the extent that it serves the business. A company name on an invoice does not turn a private purchase into a business cost.
An expense is not a full refund
A cost reduces profit; the benefit is the tax saved. More expensive assets may need to be depreciated over several years.
- retain invoice and payment evidence
- note the business purpose
- split private and business use
- assess VAT separately
Document unusual spending
Link each amount to evidence and explain unusual costs. Check restrictions for meals, clothing, entertainment and a home workspace.
Mixed expenses and evidence of purpose
A phone, internet, car or equipment may be used privately and for business. Record a reasonable allocation method and apply it consistently; payment from a business account is not proof by itself.
Link an unusual purchase to its assignment and retain the invoice, payment evidence and a short explanation. That record is more reliable than memory several years later.
- invoice
- payment evidence
- business purpose
- private-business allocation
Income tax and VAT are separate questions
An expense may be deductible for income tax while input VAT recovery is restricted. Assess both taxes separately and check that the invoice meets formal requirements.
An asset used for several years may need depreciation rather than immediate expensing. Check whether investment deductions may apply as well.
Official sources
Rules were checked in Dutch Tax Administration publications. The official pages are in Dutch.