Which costs are deductible as a self-employed person?
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
Costs you would not incur without your business are fully deductible excluding VAT; mixed costs such as meals and entertaining at 80% or above the € 5,700 threshold, and private costs and fines not at all.
- For VAT deduction you need an invoice in your business name; a till receipt or bank debit alone is not enough.
- Purchases above € 450 excluding VAT go on the balance sheet and are depreciated instead of deducted at once.
- Business kilometres in a private car go in at € 0.25 per kilometre, all-in: fuel, tolls and parking may not be added separately.
- Ordinary clothing is not deductible; only a uniform or clothing with a company logo of at least 70 cm2 counts as workwear.
As an entrepreneur you incur costs for your business, and those costs in principle lower your profit. As a result you pay less tax. But the tax authorities don't see every expense as business-related, and some costs are only partly deductible. In this article we list what's fully, partly and not deductible.
What are business costs?
Business costs are expenses you incur for your business. Without your business you wouldn't have these costs. You deduct them excluding VAT, since you reclaim that VAT separately via your VAT return. Always keep your receipts and invoices as evidence.
Which costs are fully deductible?
Many business costs are 100% deductible. Think of office or workspace rent, office supplies such as a laptop, phone or printer, marketing costs such as your website, business travel by public transport, study costs to maintain your professional knowledge, and administration costs such as your bookkeeper and bookkeeping software.
| Cost item | Deductible |
|---|---|
| Laptop, phone, software, professional literature | Fully, in proportion to business use |
| Website, advertising, insurance, bookkeeper | Fully |
| Business kilometres in your private car | € 0.25 per kilometre |
| Meals, entertaining, conferences, business gifts | Limited: a € 5,700 threshold or 80 per cent |
| Workspace in your own home | Usually not |
| Ordinary clothing, fines, private spending | No |
Which costs are only partly deductible?
Some costs also have a personal element and are therefore limitedly deductible. These are mixed costs, such as business dinners, entertainment, conferences and business gifts. For these a threshold of 5,700 euros applies in 2026, or you deduct 80% (73.5% for a BV).
Which costs are not deductible?
The tax authorities don't see some expenses as business-related. Examples are personal grooming such as the hairdresser, general clothing that isn't workwear (only a uniform or clothing with a company logo of at least 70 cm2 counts), and fines, including those you got on the way to a client. You may not deduct these costs from your profit.
Why is good documentation important?
The biggest mistake is lumping all costs together without explanation. Keep your receipts and invoices, and for borderline cases note the business purpose. Business costs are a standing point of attention in any audit, so tidy bookkeeping prevents corrections and additional assessments.
How to test an expense in four steps
If you are unsure about an expense, run through these four questions. Four times yes and you are fine. Stumble on one and the item does not belong, or only partly.
- Would I have made this expense without my business? If so, it is probably private.
- Do I have an invoice in my company name? A till receipt or bank debit alone is not enough for VAT.
- Is there a private element? Then split off the business share, as with phone, laptop and internet.
- Does it cost more than 450 euros excluding VAT? Then it is a business asset you depreciate instead of deducting at once.
Frequently asked questions
What makes a cost a business cost?
That you would not incur it without your business. The tax authorities test whether the expense reasonably fits your business. You need not prove it was useful, but you must show it was for business.
Do I deduct costs with or without VAT?
Excluding VAT, because you reclaim that VAT separately in your VAT return. Under the small business scheme, or if you are exempt, you deduct the amount including VAT.
Which costs are only partly deductible?
Mixed costs: business meals, entertaining, conferences and business gifts. In 2026 a threshold of 5,700 euros applies, or you opt to deduct 80 per cent. See dining with a client.
Can I deduct costs from before registering?
Yes, start-up costs incurred with your business in mind are deductible, and you can often still reclaim the VAT. See reclaiming VAT on pre-start costs.
Why is a purchase above 450 euros different?
Then it is a business asset: you put it on the balance sheet and depreciate it over several years instead of deducting it at once. See capitalise or deduct immediately.
What happens if I claim private costs?
In an audit they are corrected, with an additional assessment and tax interest. Systematic padding can add a penalty. If you doubt an item, check it before claiming it.
Sources
- Business costs: fully, partly or not deductibleBelastingdienst · belastingdienst.nl
- Threshold for limited deductible costs 2026Belastingdienst · belastingdienst.nl
- Business use of a private vehicle: € 0.25 per kilometreBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
