Road tax

Private car for professional purposes in Belgium

In Belgium, you can partially deduct the costs of a private car that you use for professional purposes under certain conditions. These are the most important points to consider:

1. No full deduction possible for private car

A private car that is not stated in the name of the company is considered a personal expense. You cannot deduct the costs in full, but you can claim part of the costs as professional expenses if the car is (partly) used for your profession.

2. Calculate the percentage of professional use

In order to deduct the costs correctly, you must determine the percentage of professional use. You can do this by keeping a logbook in which you:

• Record the total number of kilometres driven;

• Keep track of the number of kilometres driven for professional purposes.

  For example: If 60% of the kilometres you drive are for professional purposes, you may deduct 60% of the car costs.

  3. Which costs are deductible?

  The next car costs can be deducted proportionally:

  • Fuel costs;

• Maintenance and repairs;

• Insurance;

• Breakdown assistance;

• Depreciation of the car (if applicable);

• Road tax and registration tax.

  The Belgian tax authorities apply rules that specifically apply to the deductibility of car expenses:

  • Fuel costs are deductible up to 75% of professional use %;

• Other car expenses (such as maintenance and insurance) are deductible on the basis of a CO2-related scale. Deductibility varies between 40% and 100%, depending on the car's CO2 emissions.

5. Flat-rate deduction (alternative)

6. How to declare?

The deductible costs must be included in your tax return (for self-employed persons) or in your company's accounts. Make sure that you:

• Keep supporting documents such as invoices and receipts;

• Keep clear records of professional use.

Conclusion

Although you cannot deduct the full cost of a private car in Belgium, you can deduct part of the costs for its professional use. It is important to keep accurate calculations and good records to avoid problems with the tax authorities. Consult an accountant or tax advisor for tailored advice.

I hope this helps.