In this article, we explore whether representation expenses are deductible in your sole proprietors’ accounts. We also explain the types of representation expenses and how best to keep track of them!
Need a refresher on the meaning of representation expenses? Then be sure to view our article on the meaning of representation expenses.
Deductibility of representation expenses
Representation expenses are costs that are not directly linked to your core business, but do contribute to generating income. Consequently, the government says there is nevertheless some limitation from the tax deductibility of such costs.
In general, 50% of representation expenses are deductible from taxes. But excessive expenses can always be refused by the tax authorities. So pay attention if your representation expenses are excessive or excessive.
Tip
It is important to keep good records and document all your representation expenses. The more evidence you have, the better you can justify them in the event of an audit.
Representation expenses accounting
Because representation expenses are often small and scattered, it is not always easy to collect receipts and proof. Yet this is crucial for deductibility. Here are some tips:
📸 Take photos of receipts if you can’t keep them
📋 Make clear notes (on the receipt) with the reason for the expense
📆 Keep track in a digital app.
Optimise your accounting and don’t forget any expenses with Dexxter!
This way, you create a clear summary that will convince the taxman of the necessity of your representation expenses.
Keep it under control with Dexxter
We hope you now have a much better idea of the deductibility of representation expenses. It’s a complex subject with a lot of pitfalls. But not to worry, with the right tools you can easily keep everything under control!
Managing entertainment expenses has never been easier than with Dexxter, the user-friendly accounting software for sole proprietors! Manage all your income and expenses in a snap. This allows you to accurately keep track of your entertainment expenses and how much you can deduct.
Optimise your bookkeeping and do not forget any expenses. Put your receipts in Dexxter however you want (mail, app, PC). 🤝
Self-accounting for Belgian sole proprietors!
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