Deduct car accessories

From your phone holder and charging cable, to a GPS and parking pass: car accessories are tax-deductible

For several years now, the tax deductibility of your car has in fact been determined by its CO2 emissions. The tax deductibility of the cost of car accessories such as a phone holder, charging cable, GPS, parking card, anti-freeze blanket and so on, is the same as that of your car itself.

Say you can deduct 60% of your car as a professional expense (taking into account the outcome of the formula based on CO2 emissions and your professional use of it), then you can also deduct 60% of all your car accessories for tax purposes. It’s that simple.

The same principle applies to other costs associated with your company car:

• Repairs and maintenance
• The interest you pay on a car loan
• Insurance
• Vehicle registration tax (GST)
• Electricity for charging and fuel costs

What car accessories are tax deductible?

In principle, all car accessories are tax-deductible to the same extent as your car is deductible as a professional expense. However, always make sure the car accessories are relevant and don’t overdo it.

A hands-free kit, phone holder and charging cable to safely answer business calls is certainly a justifiable professional expense, just as a sticker advertising your company is. Or a blue parking pass to park correctly and a coat rack to attach to the headrest for your coat when visiting a client. These are all good examples of car accessories that are tax deductible.

A sunshade for the window or a mini TV for the little ones in the back seat are in principle also accessories, but in most cases have no direct link to your professional activity. So these purchases are better paid for privately.

How to calculate the maximum tax deductibility of your professional vehicle?

To find out what percentage of the car cost is tax deductible, we take into account the formula based on the CO2 emissions of your car on the one hand, and its professional use on the other.

The CO2 formula looks like this:

120%- (0.5% x [coefficient] x CO2 )

For hybrid cars and combustion engine cars, the tax deductibility decreases significantly in the coming years. You can read more about the calculation and tax deductibility of company cars here.