Which business expenses can you deduct?
The complete test for deductible business costs: what counts, mixed-use expenses, documentation rules, and the most common categories of costs you can claim.
The biggest gap between your invoice total and what the tax office lets you count is usually not a deduction rule — it's guessing wrong about which business costs actually qualify. Here is the one test that answers whether any expense can be deducted, plus the major cost categories and how to handle the tricky ones.
The one deductibility test
A business cost is deductible if, and only if, it has a clear business purpose. You bought it, or paid for it, as a direct result of running your business. The Belastingdienst does not care how much you spent or whether you got a good deal. It cares whether the expense is logically linked to earning your income.
Examples that pass:
- Software subscriptions for your work.
- Laptop or tools for the job.
- A website domain and hosting.
- Professional insurance.
- An accountant or bookkeeper.
- Training or courses that sharpen your craft.
Examples that fail:
- Groceries (private consumption).
- A holiday (personal, not work-related).
- A car loan (personal use, not entirely business).
- A gym membership (personal health).
The quick test
Ask: "Would I have spent this money if I wasn't running this business?" If the answer is no, it likely qualifies. If the answer is yes — you'd buy it anyway — it's probably private.
Fully deductible vs. partly deductible
Some costs are 100% business. Others have a mixed use — you pay for something that serves both your business and your private life. Only the business share counts.
Fully deductible (assuming business purpose):
- Invoicing software.
- Co-working space.
- Professional fees (accountant, lawyer, etc.).
- Business insurance.
Mixed use — you deduct the business share:
- Internet & phone: if you use it for business and personal, deduct the portion you use for work. Common split: 50–70% business.
- Vehicle: if you drive a private car for business trips, you don't deduct the car itself — you claim the mileage allowance instead (see mileage allowance: €0.23/km).
- Home office: the strict rules around home office deduction mean most home-based freelancers can't deduct the room itself, but you can deduct a desk, chair, or equipment that sits in it.
- Meals during travel: only deductible if you're travelling for business; a meal at home is private.
Common mixed-use splits
Documentation — the tax office's insurance policy
The Belastingdienst doesn't demand a receipt for every coffee, but it expects you to be able to prove every deduction you claim. For small items, a credit-card statement suffices. For larger purchases, keep:
- The invoice or receipt.
- A note of what it was for (especially if the description is vague).
- Any related communications (order confirmation, email, contract).
For mixed-use costs, jot down how you calculated the business share — for example, "internet: 60% business" or "home office: 40% of rent + utilities, based on room size vs total flat."
The Belastingdienst only digs into your records if there's a red flag (unusual deduction, round numbers, income spikes). But if you claim €5,000 in annual costs and can't back any of it up, you'll lose that deduction plus a fine.
The 7-year rule
Keep every receipt and invoice for 7 years. That's how long the Belastingdienst can audit you. See how long to keep your records for more.
The major cost categories
Software & subscriptions
SaaS, cloud tools, AI services, design platforms — all fully deductible if you use them for work. E-invoicing software, accounting tools, project management apps, hosting — the whole stack counts.
Hardware & equipment
A laptop, monitor, printer, mic, or camera? Anything over roughly €450 gets depreciated over its useful life. Cheaper gear can be expensed at once. Either way, it counts.
Professional services
Your accountant, lawyer, graphic designer (if you hire them), or any consultant — fully deductible. Even coaching for business skills qualifies.
Insurance
Professional liability, general liability (AVB), and disability insurance (AOV) are all business costs. Your mandatory health insurance is not (it's paid separately and has its own tax treatment).
Let ZZP Belasting do the maths
Automatic BTW returns, income-tax forecasts and depreciation — from the invoices you already have.
Try it freePremises & workspace
If you rent a separate office or co-working space, it's fully deductible. If you work from home, the deduction is much tighter. See home office deduction for the test. In short: most home-based freelancers can't deduct the room, but they can deduct furniture and equipment used in it.
Travel & mileage
Mileage in a private car: claim €0.23 per km in 2025 (€0.25 in 2026) for each business trip. Train, plane, taxi: fully deductible if the trip is for work. Accommodation while travelling: fully deductible if the trip is for work. Meals during travel: partially deductible (see mixed use, above).
Training & development
Courses, books, conferences, or certifications that build skills for your trade: fully deductible. A course you take for personal interest does not count.
Representation & entertainment
Client meals, gifts, and hospitality are partly deductible under strict rules. See business meals and entertainment for the limits.
The tricky edge cases
Furniture & renovation costs at home: A desk bought for your home office can be depreciated. If you renovate your room to make it suitable for work — painting, flooring — that's usually treated as a home improvement (private) and not deductible. The line is fuzzy; document your reasoning.
Mobile phone if you're the sole user: If the phone is entirely for work, it's fully deductible. If you use it privately too, split it (e.g., 60% business).
Car loan or lease: You cannot deduct the loan or lease itself if you use the car privately. Instead, claim mileage. If the car is owned by your business and used exclusively for work, you can deduct the lease or depreciation, plus fuel and maintenance.
Subscriptions to tools you rarely use: If you pay for a tool and don't use it, it still counts as a cost — but the Belastingdienst may challenge it if it looks unreasonable.
Frequently asked questions
Can I deduct a cost if I haven't been invoicing yet?
What if a cost is only 30% business and 70% personal?
Do I deduct costs on my turnover or in my profit calculation?
Can I deduct costs I paid in a previous year?
Understanding the deductibility test — business purpose — is the foundation. Once you have that, the rest is just categorising what you spend. The biggest mistake is overthinking it: if you wouldn't have spent the money without your business, it almost certainly qualifies. And if you're unsure, keep the receipt and track your logic. ZZP Belasting helps you record every expense cleanly, so when tax time comes, your deductions are already sorted.