You can only deduct the costs that you make for your business. Such as the rental costs for business premises or costs for an internet subscription. These costs are also called business expenses.
There are also costs related to starting a business. These start-up costs are sometimes deductible. For example, costs for registering in the KVK Business Register. If you have costs that relate to both business and personal uses, you can only deduct the business part (in Dutch).
Many business expenses can be deducted at once but business assets must be spread over several years:
Deductions that must be made in 1 year
Costs that you incur in 1 year can be fully deducted in the same year. For example, rental costs. Read more about expenses you can deduct in 1 year (in Dutch).
Deductions that must be spread across multiple years
Sometimes you must spread the deduction over several years, such as when buying a company car. Then you must amortise this investment. To do so, you divide the costs over the years in which you use the asset.
VAT on business expenses
You can usually deduct the VAT you pay on your business expenses in your VAT return. The Dutch Tax and Customs Administration (Belastingdienst) calls this an input tax deduction.
Do you have business premises? For example, an office, factory, shop, or workshop? Learn more about what costs are deductible for your business premises.
Running a business from your home
Business expenses for a workspace in your home cannot usually be deducted. The Dutch Tax and Customs Administration has a tool (in Dutch) to help you calculate what costs you can deduct for a workspace in your home.
Study costs that are made specifically for your business can be deducted from your profits. For study costs made simply to learn something new, consider applying for the STAP budget for training and development. Learn more about the deduction of study costs for work (in Dutch).
Insurance and pension premiums
Insurances you take out for your business are business expenses. For example, a business or professional liability insurance. You can deduct these insurance premiums from your profit. This also applies to pension premiums.
Promotion and representation costs
Do you spend money to promote or represent your business? For example, with a website, business cards, business gifts, or business lunches. These costs can be partially deducted.