{"id":94756,"date":"2026-04-13T14:53:54","date_gmt":"2026-04-13T12:53:54","guid":{"rendered":"https:\/\/dexxter.be\/cost-or-investment-rules-for-purchases-under-e250\/"},"modified":"2026-05-15T13:26:23","modified_gmt":"2026-05-15T11:26:23","slug":"cost-or-investment-rules-for-purchases-under-e250","status":"publish","type":"post","link":"https:\/\/dexxter.be\/en\/blog\/cost-or-investment-rules-for-purchases-under-e250\/","title":{"rendered":"Cost or investment: what about purchases under \u20ac250?"},"content":{"rendered":"\n

Can you simply record a mobile phone costing less than \u20ac250 as an expense, or do you need to register it as an investment?<\/p>\n\n\n\n

This is a question that regularly comes up in our Dexxter community<\/a>. That\u2019s why, in this article, we explain how to handle a purchase of less than \u20ac250<\/strong>, what the tax rules are, and how to register this correctly in your accounts.<\/p>\n\n\n\n

What is a business expense?<\/strong><\/h2>\n\n\n\n

A business expense is an expense that is directly necessary for your business<\/strong> and the amount of which you may deduct in one go<\/strong> in the year of purchase.<\/p>\n\n\n\n

\u2714\ufe0f Often involves smaller or shorter-term purchases<\/p>\n\n\n\n

\u2714\ufe0f Is immediately recorded in full as an expense<\/p>\n\n\n\n

\u2714\ufe0f Immediately reduces your taxable profit<\/p>\n\n\n\n

Examples:<\/strong> office supplies, software subscriptions, small equipment, etc.<\/p>\n\n\n\n

What is an investment?<\/strong><\/h2>\n\n\n\n

An investment is a purchase that lasts longer than one year<\/strong> in your business and usually has a higher value<\/strong>.<\/p>\n\n\n\n

This is not deducted in one go, but gradually<\/strong> via depreciations<\/strong> (spread over several years).<\/p>\n\n\n\n

\u2714\ufe0f Durable goods<\/p>\n\n\n\n

\u2714\ufe0f Higher purchase price (in Belgium, the \u20ac250 excl. VAT threshold serves as a guideline)<\/p>\n\n\n\n

\u2714\ufe0f Activated as fixed assets<\/p>\n\n\n\n

\u2714\ufe0f You record a portion of the expenses as a cost each year (= depreciation)<\/p>\n\n\n\n

Examples:<\/strong> laptop, machine, camera, car, large tools, etc.<\/p>\n\n\n\n

Why is there a difference between business expenses and investments?<\/strong><\/h2>\n\n\n\n

The Belgian tax authorities make a clear distinction between business expenses<\/strong> and investments<\/strong>.<\/p>\n\n\n\n

For purchases under \u20ac250 excl. VAT<\/strong>, you may immediately record the full amount as an expense<\/strong>. You therefore do not need to record the item as an investment and depreciate it over several years. Even if the item actually lasts longer.<\/p>\n\n\n\n

You may<\/em> register it as an investment if it remains in your business for the long term, but this is not an obligation as long as you stay below the \u20ac250 threshold.<\/strong><\/p>\n\n\n\n

\u27a1\ufe0f Example:<\/strong> You buy a mobile phone for \u20ac199 excl. VAT<\/strong>. You may register this in full as an expense in the year of purchase.tytyh<\/p>\n\n\n\n

Why is \u20ac250 the threshold?<\/strong><\/h2>\n\n\n\n

The \u20ac250<\/strong> limit is not a legal requirement, but a practical rule<\/strong> used by many accountants. It helps determine which minor purchases you can immediately record as an expense.<\/p>\n\n\n\n

Originally, this limit stemmed from the old VAT rules<\/strong>. Purchases under \u20ac250 were then regarded as \u201csmall items\u201d and did not need to be recorded as an investment or business asset. This simplified the administration.<\/p>\n\n\n\n

Today, the VAT threshold has been raised to \u20ac1,000<\/strong>, but in practice the \u20ac250 limit remains useful. The tax authorities readily accept small purchases below this amount as business expenses. This allows you to record them quickly and hassle-free, even if they last for several years.<\/p>\n\n\n\n

In short: \u20ac250 is a useful rule of thumb<\/strong> for the self-employed to process small purchases correctly and easily.<\/p>\n\n\n\n

So how does it work in practice?<\/h2>\n\n\n\n

Under \u20ac250<\/h3>\n\n\n\n

\u2192 Almost everyone records this directly as an expense.<\/strong><\/p>\n\n\n\n

Why? Because it\u2019s small equipment and the tax authorities will never dispute it.<\/p>\n\n\n\n

\u20ac250 \u2013 \u20ac1,000<\/h3>\n\n\n\n

\u2192 Grey area.<\/strong><\/p>\n\n\n\n

You have the option of selecting expense or investment. There is no law requiring you to record it as an investment, unless it is clearly<\/em> a durable item (e.g. a laptop).<\/p>\n\n\n\n

From \u20ac1,000<\/h3>\n\n\n\n

\u2192 For accounting and tax purposes, this is clearly an investment<\/strong>. You must therefore depreciate it. This is also supported by the VAT threshold of \u20ac1,000.<\/p>\n\n\n\n

How do you record this in Dexxter?<\/strong><\/h2>\n\n\n\n

In Dexxter, you simply record this as a business expense<\/strong> in the \u2018miscellaneous small purchases\u2019 category.<\/p>\n\n\n\n

Based on the amount and the expense type, the system knows that this is not an investment.<\/p>\n\n\n\n

No depreciation required, no separate transactions, just processed quickly and correctly.<\/p>\n\n\n\n

View our video on expense versus investment<\/strong><\/h2>\n\n\n\n

Would you like an explanation on how to process small purchases correctly?<\/p>\n\n\n\n

\ud83d\udc49 View the video:<\/p>\n\n\n\n

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Attention! We are talking here about the threshold amount for expenses! VAT administration, on the other hand, applies an other limit<\/a>, namely \u20ac1,000. Don\u2019t worry, Dexxter automatically takes these matters into account.<\/p>\n\n\n\n