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Categories for business expenses

Below we describe the most commonly used categories for business expenses and VAT deductibility. Keep in mind that if you want to deduct VAT—or simply include an expense in your administration—you must always have a receipt.

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Written by Danica van Zyl

Meals and entertainment – 0%
If you treat a client or (potential) business partner to breakfast, lunch, or coffee, these costs count as business expenses. Officially, this falls under representation costs. We apply private-use corrections at the end of the year, so you should enter the full invoice amount. Important: NEVER deduct VAT here (set everything to 0%).

Having coffee by yourself while working somewhere is considered a private expense. These receipts should not be included.

If the costs are for an event you organize, they may count as purchase costs (e.g. catering). If you hire a caterer for representation purposes, VAT is not deductible. If it’s included in a package price (location + lunch), VAT may be deductible.

Mobile phone (subscription 21% and/or device repayment 0%)
Download your invoice and check that VAT is included. Only then can you deduct it. If there’s no VAT, request a proper invoice from your provider.
If you’re also paying off a device, record the repayment separately (usually 0% VAT).

Rent – 0% or 21%
This includes renting your workspace, studio, or workshop (including storage). Depending on your agreement, rent may or may not include VAT. Check whether your rent is VAT-exempt or if you can reclaim 21% VAT.
Using a workspace at home? Only in very limited cases are these costs deductible.

Workspace setup
You can only deduct furnishing costs if you rent a separate workspace. Think desks, chairs, plants, etc. A home workspace usually does not qualify.

Office supplies
Materials like paper, pens, etc. (also allowed without a formal workspace).

Work clothing
Only clothing exclusively for work (e.g. safety shoes or clothing with a company logo of at least 70 cm²). Regular clothing is considered private.

Public transport
Business travel. Download a quarterly overview (e.g. via your OV-chipkaart account) and exclude personal travel.
Alternatively, use a mileage registration (€0.23 per km).

Car (business)
Vehicles with a purchase price above €450 (excluding VAT).

Other car costs
Fuel, repairs, parking, etc. Only if the car is on the business. Otherwise, use mileage registration.

Private car mileage – 0%
If you use a private car for business, you can claim €0.23 per km. No separate car costs allowed.

Outsourced work
Hiring freelancers for assignments.
(Accountant = admin costs, marketer = marketing costs.)

Training & education
Only deductible if it maintains existing knowledge—not for learning a completely new field.

Professional literature – 9% or 0%
Books and resources for your profession (usually 9% VAT).

Software
Tools like Adobe, Final Cut, etc. VAT is often reverse-charged.

Bank fees
No VAT applies.

Administration costs
For example, your Bookie subscription.

Legal costs
Advice, contracts, representation.

Insurance
Business liability, etc. VAT-exempt.

Marketing
Ads, website, promotional materials, etc.

Website costs
Hosting and maintenance.

Website > €450
Development costs above €450 are considered investments. Please keep in mind that this is only the case if these are one off costs. If this is a periodic thing they fall under website costs.

Investments
Assets above €450 (excluding VAT). We handle depreciation for you.

Shipping costs
Usually same VAT rate as the product.

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