As a sole proprietor in Belgium, there are several rules and regulations to consider. One of the most important aspects is the VAT deductibility of light freight. Let’s take a closer look at exactly what this contains and how you can apply it in your company. That way you’ll stay up to date from all the ins and outs and avoid penalties!
Note: First, you must meet the conditions of a light cargo before you can enjoy the tax benefits of a company car as light cargo.
VAT light cargo deduction, the options
1️⃣ Trip administration
For the costs related to a light truck, you can determine the VAT deduction from a trip administration. Here you split the amount of professional mileage and the amount of private mileage.
The VAT deductibility here can basically go up to 100%, based on the actual professional use % of your vehicle. But know that the tax authorities are critical of 100% professional use %, never even private use is virtually impossible.
2️⃣Flat-rate deduction
The flat rate is a simplified way to determine the vAT deduction. You don’t have to keep records of trips, but you apply a fixed percentage:
- 100% for professional use only
- 85% for light trucks used predominantly for professional purposes
- 35% for light trucks that are not predominantly used professionally
The flat rate can be an attractive option for business owners who don’t want the administrative hassle of keeping trip records.
Attention!
You cannot combine the flat-rate deduction with trip records, and you must apply the flat rate to all mixed-use light trucks.
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