Deductible business expenses 2026.

What are business expenses?

Business expenses are costs you incur to obtain or maintain income. In your tax return (personal income tax) or in your company, you can deduct those costs (in full or in part) — provided you can substantiate them (invoice/receipt + business purpose).

In Belgium, a number of expenses are subject to fixed deduction limitations. Below you’ll find a practical summary for 2026, based on the Vandelanotte information sheet “Deductible business expenses 2026”.

Please note: this is an overview. The exact deductibility often depends on your specific situation (sole proprietorship vs. company, business use, supporting documents, …). Discuss borderline cases with your accountant.

1) Passenger cars (car expenses)

For car expenses, there are typically two key aspects:

• Income taxes (PIT/CIT): deductibility according to specific rules (incl. CO₂/fuel type and purchase date).
• VAT: deduction is in principle limited to the business use, with a maximum of 50%.

VAT: 3 methods to determine business use (max. 50%)

1. Actual business use via a mileage log (manual or automatic).
2. Semi-flat rate (private % via commuting + the 6,000 km formula).
3. General flat rate of 35% (applies for 4 years).

Income tax: key points for 2026

• Zero-emission cars (fully electric, hydrogen, …) purchased/leased/rented up to and including 31/12/2026:
  • 100% deductible (car expenses + electricity costs).
• Cars that run only on fossil fuels: deduction via the gram formula with caps; cars from 01/01/2026 are not deductible.
• Plug-in hybrids:
  • Deduction depends on the purchase date and (in PIT from 2026) an adjusted gram formula for car expenses/fuel (electricity separately).
  • From 2026: fuel costs 0% (PIT), and not deductible in corporate income tax (according to the sheet).

Common car expenses (selection)

• Maintenance/repairs, tolls, car wash: deductible according to the vehicle rules + invoice requirements.
• Parking at a “daily rate” (retribution) counts as a car expense (not a fine) → follows the vehicle rules.
• Traffic fines: see “Fines” below.

2) Business gifts

Income tax

• General rule: 50% deductible (the non-deductible VAT is then also 50% deductible).

VAT

• < €50 (excl. VAT) per gift: VAT deductible.
• ≥ €50 (excl. VAT) per gift: VAT not deductible.
  (Also note: multiple gifts that together are ≥ €50 for the same person.)

Exceptions/nuances (selection)

• Tobacco and spirits (>22°): VAT is in principle not deductible, with some exceptions (resale, tasting, …).
• Gifts during a business trip abroad: according to the sheet 100% deductible.

3) Reception and hosting costs

• Income tax: 50% deductible (also non-deductible VAT: 50%).
• VAT: not deductible.

Exceptions/nuances:

• Reception for staff (1×/year and collective): 100% deductible (in income tax); VAT rules depend on “full service” vs. own preparation/serving.
• Promotional events/product launches with a clear advertising character: (parts of) the costs can be 100% deductible — especially if reception costs are clearly separated on the invoice.

4) Restaurant expenses

• Income tax: 69% deductible (also non-deductible VAT: 69%).
• VAT: not deductible.

Important exceptions:

• Meals for staff working outside the company for > 6 hours/day: 100% deductible (and 100% VAT deductible) provided there is an invoice.
• Free coffee/soup/soft drinks for staff (collective): 100% deductible (and 100% VAT deductible).

5) Fines

• Not deductible (in principle), and no VAT.

Example (from the sheet): traffic fines incurred by staff are not deductible, with a risk of assessment for secret commissions; a fine can be deductible if it is included as a benefit in kind on the employee’s tax slip.

6) Social benefits

• General rule: not deductible.
• VAT: not deductible in case of a private benefit; yes in case of a collective benefit.

Examples (selection):

• Specific professional training for staff: 100% deductible (and 100% VAT).
• Company bike (commuting): 100% deductible (in PIT this can be 120%).
• Meal vouchers (from 01/01/2026): the employer contribution is deductible up to €4/voucher (with the maximum contribution); lower contributions remain deductible up to the existing maxima (conditions apply).

7) Other expenses (selection)

• Professional literature: 100% deductible (and 100% VAT) if it is useful for the profession.
• Works of art: according to the sheet not deductible, except possibly for decorative works with depreciation (a question of facts).
• Hospitalization insurance: not deductible.
• Mobile phone subscription: deductible to the extent of business use (income tax and VAT).

Source

Vandelanotte – “Deductible business expenses 2026” (information sheet).