Deduct your car
Easiness to justifyFrequency1 in 5x per year
Your car is often one of the most important business expenses you can incur as an independent in Belgium (sadly ?): the amounts you can deduct through your car are usually significant and therefore allow you to reduce your taxes considerably.
Be careful, though, because the deductibility of business expenses related to your car is a thorny issue, that the government and the tax authorities are dealing with very actively.
How? By limiting the maximum amount you can deduct in relation to your vehicle.
For you, we, therefore, detail the rules in force and give you simple and precise examples to understand how to maximise the deduction of your transport costs. If you have any questions, please contact us via email at email@example.com.
You buy your vehicle after 1 July 2023 🆕
In 2023, the rules are changing to reflect the government’s desire to shift the business vehicle fleet to electric.
Thermal and hybrid cars
For internal combustion and hybrid cars, the maximum deduction for your vehicle, and all related costs ⚠️, is then given by the following rules:
- Purchase before 1 July 2023: 120%- (0.5% x [coefficient] x CO2 )
- From 1 July 2023: max 75%.
- From 1 January 2026: max 50%.
- From 1 January 2027: max 25%.
- From 1 January 2028: 0%.
Please note that the fossil fuel costs of hybrids are deductible to a maximum of 50%.
For fully electric cars, the maximum deduction is higher and is calculated as follows:
- From 1 January 2023: max 100%
- From 1 January 2027: max 95% -> max 67.5% in 2031
A higher deduction should therefore allow you to recover the higher purchase cost of an electric vehicle. It is therefore important to do the math before making your purchase decision.
You bought your vehicle between 2018 and 2023
In 2020, the rules for deducting expenses related to your business vehicle also changed: you deduct your car according to the business use you make of it and, since January 2020 for a large proportion of vehicles, according to the CO2 emissions of your vehicle.
120% – (0.5% x coefficient x CO2/km)
The CO2/km, you will find it in the documents of your vehicle. The coefficient will be as follows:
Le coefficient dépend du carburant :
|Diesel & hybrids||1|
|LPG ( <11 HP)||0,90|
All company cars, whether new or used, put into circulation before 2020, fall under this new regime.
All cars ordered or purchased from 2018 onwards by a natural person will also fall under this regime.
Did you buy your car before 2018?
Are you an eenmanzaak or personne physique who bought or ordered a car before 2018? You will remain under the old system of deductibility, in stages.