Self-employed VAT deduction – which VAT is deductible?

When can you refund VAT?

If you have business costs, your supplier will charge VAT in most cases. As a VAT entrepreneur, you can deduct the VAT you have to pay. This is called ‘deduction as input tax’.

Example of calculation before tax

Suppose you had a turnover of €1,000 in the last quarter. You charge €210 VAT on this. The total amount on the invoices – including the VAT amount – is €1,210.

In the same quarter, you purchased goods for your business worth €121 (including VAT). You can count the VAT amount of €21 as a deduction. In this example, the amount you ultimately pay to the tax authorities is €189 (€210 – €21).

What VAT can you deduct?

There are a number of conditions when it comes to VAT refunds. First of all, as an entrepreneur, you must be liable for VAT. You can also only claim VAT back if it concerns business costs. And of course you must have an invoice that meets the requirements of the tax authorities.

VAT deduction for entrepreneurs

Tax first of all checks whether the costs are fully incurred in the interest of your company. In other words: why have you incurred the costs and are they fully benefiting your business? In addition, goods or services for which you have received a VAT invoice must actually have been delivered. Check whether the received invoices meet the requirements for a VAT invoice and manage these invoices.

We have listed the most important VAT deductions and tax schemes for the self-employed. That way, you can immediately see what you can use as a VAT deduction.

Home office

Do you have a workplace at home? In that case, you may only deduct the expenses for the workspace in question if it is an independent workspace. A home workplace is considered independent if this space can be rented out separately. He must have his own entrance, toilet and energy supply. In addition, you must spend sufficient hours in this room that are related to your turnover. You can read more about it here.

Deduct expenses for car business

Do you have a car registered in your company? Then you can – in short – deduct all incurred costs from your tax.

In any case, you can deduct the VAT from the VAT you have to pay. You can also think about deductible costs such as insurance, fuel, repairs and financing your car. You can read more about a company car here.

Disability insurance (AOV)

Do you have an AOV as a self-employed person? Then this is also deductible. The AOV is seen as personal insurance that is deductible in box 1 for income from work and home.

Business trip

Do you choose to travel for business by train, bus, tram, taxi or plane? In that case, you can fully deduct the VAT paid. It is important that you can always demonstrate the business nature of your trip.

Deduct VAT from independent study costs

Are you following a course as a self-employed person or entrepreneur? Then you can enter the VAT in full as input VAT. Are you traveling to the education or course in question? These are also costs that fall under business costs and you can claim VAT back on them.

Non-deductible expenses

Business expenses, which are at your own expense in terms of VAT, are business lunches and dinners. You cannot therefore claim VAT back on this.

The situation is slightly different when it comes to corporate gifts and employee benefits. You can read more about this on the Tax website.

No turnover, but reclaim VAT

Are you unexpectedly generating no revenue? You can then refund VAT if you have incurred costs for the benefit of your business.

Filing a VAT return – this is how it works

Are you liable for VAT as an entrepreneur? Then you must submit a tax return for your VAT at regular intervals. Most entrepreneurs submit their quarterly tax return via Skat’s online environment.

In the online declaration, you first enter the VAT on your turnover. You then enter the VAT on the costs incurred. The online declaration then calculates what you have to pay or get back.

Online bookkeeping or professional bookkeeper

Accounting is one of the least favorite activities of entrepreneurs, but it is part of it. A big advantage of online bookkeeping is that you can easily keep track of not only the bookkeeping (including the VAT declaration), but also the other administration. You can read more about accounting packages here.

Do you want to focus fully on your business? Then it is best to hire an accountant. He is familiar with all VAT rules. Via De Zaak you can easily find affordable bookkeepers in the area.

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