📖 Taxation & Accounting: The importance of inventory
In Accountable, you can track your stock variation and report it directly in your income tax declaration. In Belgium, businesses that purchase and sell goods must maintain a record of their stock levels and report them in their accounts. The inventory book must include:
the cost of goods sold,
the value of unsold inventory at the end of each accounting period.
While it is recommended to keep the inventory book updated throughout the year, for self-employed persons, an annual record of inventory levels and their variation is sufficient.
🎤 Only materials and equipment intended for resale should be recorded as inventory. Do not include assets intended for internal use or depreciation.
Source
Please note that this article provides general guidance only. Tax rules may vary depending on your individual situation. When in doubt, ask your Tax Coach.
This article covers why stock variation matters, how to calculate it, practical examples, and how to enter it in Accountable.
🔄 Why track stock variations?
Your stock is influenced by two elements:
Purchases and sales of goods
Price changes in the products held
The goal is to account only for the gain at the time of sale. Your taxable income is adjusted based on stock value.
🪡 What is a stock variation?
✅ Stock variation = Ending stock − Starting stock
✅ Stock only concern goods, not services.
Positive variation: your stock increases (you bought more than you sold). This does not increase your tax, since purchases are deductible as business expenses. The stock variation offsets this deduction, so the net effect is neutral.
👉 In the income tax return, this increases the amount in code 1600, as it reflects a temporary gain due to purchases that have not yet been sold.
Negative variation: your stock decreases (you sold goods previously purchased). That means you realised a profit margin and will be taxed only on that margin.
👉 In the income tax return, this reduces the amount in code 1600, as you are only taxed on the profit margin actually realized.
📆 Three key moments of stock management
1. At purchase
When you buy goods intended for resale:
Stock increases
This increase is fiscally offset by a deductible business expense
If you are VAT-registered, you can deduct VAT. Your stock is therefore always valued at the purchase price, excluding VAT. If VAT is non-deductible fully or partially, that portion is included in the cost of stock.
2. At sale
When you sell goods:
Stock decreases
You generate revenue, but you have already deducted the purchase. The negative variation corrects your taxable profit so that only the margin is taxed.
3. In the income tax declaration
Stock variation must be entered once, at year-end, in your income tax return.
In Accountable, this is done at step 7: Stock Variation.
📈 The amount is automatically integrated into step 9: Review, box XVII, 1600, to adjust your gross profit :
🔎 Practical examples of stock variation
📋 Example 1: Purchase without sale (neutral impact)
You purchase €5,000 of goods for resale, making no sales during the year.
Starting stock: €0
Ending stock: €5,000
Stock variation: +€5,000 (5,000 − 0)
✅ Impact: neutral on profit (purchase offset by stock)
🔹 In Accountable: enter +€5,000 at step 7
📋 Example 2: Sale of existing stock (negative impact)
Starting stock on 01/01/2025: €10,000
Ending stock on 31/12/2025: €5,000
Variation: 5,000 − 10,000 = −€5,000
✅ Impact: profit decreases, you are taxed on the margin
🔹 In Accountable: enter −€5,000 at step 7
📋 Example 3: Sale then restocking (positive variation)
Starting stock on 01/01/2025: €5,000
You sell all that stock during the year. Then you restock €7,500, which you do not resell.
Ending stock: €7,500
Variation: 7,500 − 5,000 = +€2,500
✅ Impact: you generated a margin on the sale, and the new stock adds value to your holdings. You are taxed on the margin realised.
🔹 In Accountable: enter +€2,500 at step 7
📋 Example 4: Full sale + restock + partial sale
You sell your initial stock (€5,000), purchase €7,500 of new goods, and sell part of them for €3,500.
Starting stock: €5,000
Ending stock: €4,000 (7,500 − 3,500)
Variation: 4,000 − 5,000 = −€1,000
✅ Impact: you are taxed only on the margin, because the final stock value is lower than at the start
🔹 In Accountable: enter −€1,000 at step 7
📊 Easier tracking with our Excel tool
To help you track your stock throughout the year, use our Google Sheet(or download an Excel file). It automatically calculates the stock variation to report in your income tax declaration.
Key takeaways
Belgian self-employed persons must record their stock levels and variation at least once a year.
A positive stock variation is fiscally neutral; a negative variation means you are taxed on the margin you realised.
Stock is always valued at the purchase price excluding VAT, unless VAT is non-deductible.
In Accountable, enter your stock variation at step 7: Stock Variation in your income tax declaration.
Use the Google Sheet or Excel tool to track your stock throughout the year automatically.
Need help? Chat with us or email support@accountable.eu, we're happy to help.