From 1 September 2025, nail stylists in Belgium will no longer be permitted to use or sell nail products containing the substance TPO (Trimethylbenzoyl diphenylphosphine oxide). This applies both to professional use in your salon and to sales to customers.
As a result, many nail stylists are left with unsellable products. In this article, we provide an explanation of how to correctly account for this loss in your books, so that your figures remain accurate.
Check how you recorded the products
The first step is to check which cost category you entered the products under when you bought them:
- As trade goods: products that you resell directly to customers.
- As consumables or supplies: products that you use yourself during treatments.
Trade goods: how to account for the loss
Have you recorded the products as trade goods, but are you no longer allowed to sell them under the new legislation? Then simply leave them in this category.
Why? Because the cost is already recorded in your accounts as trade goods. You are no longer allowed to sell them, but that does not change the original purpose of the purchase. At the end of the financial year, during your stock take, you indicate that these products are no longer present. This automatically ensures that the difference is recorded as a loss in your accounts.
Consumables: how to record the loss
Did you purchase the products for use in treatments (e.g. gels and polishes for clients’ nails)? Then you have probably recorded them under an other cost category than trade goods.
In that case, too, you don’t need to do anything extra. The cost is already in your accounts and automatically reduces your profit. Because you can no longer use the products due to the ban, they are effectively lost, but for accounting purposes that loss was already recorded when you entered the purchase.
Document your stock loss
Even though you often don’t need to make a separate booking in your accounts, it’s wise to document internally which products you’re disposing of.
- Make a list of product names, quantities and purchase prices.
- If possible, keep the official communication regarding the TPO ban.
This way, you can always demonstrate why you could no longer use or sell the products.
Would you like to see step-by-step instructions on how to update your inventory in Dexxter? Then take a look at our learning center.
