What are business expenses?
According to the Tax Autorities (de Belastingdienst) you can deduct business expenses from your profit.
Business costs are the costs that are necessary, within reasonable limits, for the operation of your business and the costs directly related to your business.
A number of costs are clearly business-like. In addition to regular expenses, there are also investments.
Partially business-like and partly private
In these situations, only the business part is deductible. With travel costs it is important that you only enter the trips that are business as we can not guess the nature of your trip.
However, we apply private corrections about, for example, mobile phone costs or lunch and dinner costs at the end of the year. That means that you enter the entire invoice amount.
Business or private?
Some costs could be both business and private. This is often debatable. Where Spotify transactions could be unthinkable as business costs for one entrepreneur, it could be explainable business expenses for a musician. When considering whether a cost is business or private, try to view the situation from the perspective of the tax inspector.
Your registration at the KvK (Chamber of Commerce)
The rent of a workspace
Payments of work by fellow-contracters (also called: performances by third parties)
Marketing costs for your company
Dinner and digestion costs or your eating and drinking costs (you always not 0% VAT, even if there’s 9% or 21% on the receipt)
Depending on the situation
Type of costs
It depends on the situation whether or not you label your car as a business or a private expense. That’s why we developed a tool to help you with this decision.
Do you have a business car? Then you can include all receipts and costs related to your car in your administration. Even if you have driven your car privately; ultimately you will pay an additional tax or we determine, based on your mileage records, which part of your costs we have to correct as private. Even if you rent a car or van for business purposes, you can include all receipts and invoices in your administration. Please notice that you make the decision to drive business or private as soon as you purchase the car. Read here what de Belastingdienst say about it (in Dutch).
Nice to know: in general, a car older than 15 years is profitable to drive as a business car. If your car is younger than 15 years, it could be favorable to drive your car as a business car, when the list price is low and you drive a lot of kilometers on business.
Have you purchased a car privately, but you drive for business purposes, you can still include costs with your expenses. You can deduct € 0.19 per kilometer. You enter these costs in The Bookie Webapp based on your mileage records. In the app you keep track of how many kilometers you drive on your business. For example, you enter the number of kilometers per week or month multiplied by € 0.19 with your expenses.
By adding a monthly or quarter print of your MijnNS.nl to your expenses in your Bookie App, you have an overview of everything. Don’t forget to take out your private travel costs.
The mileage record applies to the kilometers you made per bike as well: you may also deduct € 0.19 per kilometer as costs. You enter these costs based on your mileage record, in The Bookie Webapp.
Business car: costs such as insurance, parking costs, fuel bills and repair costs.
Private car: € 0.19 per kilometer. This you enter in your expenses and prove through a thorough mileage record.
One of the requirements of the Dutch Tax Authorities to make clear whether you are an entrepreneur for the Income Tax is the following:
How do you make your company known?
You depend on clients for your existence. To be an entrepreneur, you must make yourself known, for example through advertising, a website, a sign board or your own stationary.
That means, among other things, you have to put yourself visibly in the market, so you’re accessible and you show that you’re working on acquisition.
Telephone costs, both your telephone and your call costs
Internet costs at your office/workspace (not at home, unless specially needed)
Website design and monthly/annual server costs
Promotional costs on social media, such as Google, Facebook, LinkedIn and Insta Ads
Business cards, stickers, cards, prints and flyers
Do you have an office, studio or workspace? Than you may include these costs in your administration. Please note whether your rent is taxed with VAT. This depends on what you agreed with your landlord. So, check if your rent is exempt from VAT or that you can reclaim the 21% VAT.
A lot of freelancers work from home. That’s why we are asked a lot if it’s possible to include (a part of) the mortgage or rent as business expenses. The costs for such a workplace or office at home are only deducible in a very limited number of cases. Via the button on the right you can check on the website of the Belastingdienst if your workspace at home is eligible for deduction (only in Dutch).
Insurances, such as professional and corporate liability insurance (which is exempt from VAT)
Bank costs can be found on your printout of the quarter or year (exempt from VAT)
Software like Adobe. VAT has often been reverse-charged. You can indicate this in the expenses at “btw verlegging”
Knowledge: training & deepening
Even if you already are an entrepreneur, you’ll always continue developing yourself. The costs must be relevant for your industry and should be in order to extend your knowledge base. Costs for new knowledge (in another discipline) are seen as private costs. These costs may be deducted of your income tax as educational expenses.
Courses, training courses, seminars and workshops