Travel expenses are deductible when they serve a professional purpose. This article covers the main categories of travel expenses in Belgium, their VAT and income tax deductibility rates, and the rules that apply to each.
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 flights, Belgian and foreign public transport, taxis, hotels, and other travel expenses.
Flights
VAT deductibility: n/a (there is usually no VAT on flights)
TAX deductibility: 100%
Flying to a conference, a client, or another destination for professional purposes? Your ticket is deductible for income tax (there is usually no VAT on flights). Tickets for your partner, who travels with you to visit the country, are not deductible. Combining a business trip with a leisure trip? You can only deduct the plane tickets that relate to the professional part of your trip.
Belgian Public Transport
VAT deductibility: typically 100%
TAX deductibility: 100%
Public transport is an excellent option in terms of deductibility. Journeys are fully deductible when they have a professional purpose. Note that the VAT on train tickets is 6%, but you will not necessarily see it stated as such, since the SNCB ticket price is VAT-inclusive. Public transport companies are generally exempt from the obligation to issue passengers with an invoice for tickets, cards, and subscriptions. Your ticket is therefore sufficient to recover VAT (this is an exception to the standard rule requiring a proper invoice).
Foreign Public Transport
VAT deductibility: 0% (reverse charge may apply)
TAX deductibility: 0% (reverse charge may apply)
This covers all tickets for train, subway, tram, and bus trips outside Belgium.
Taxi
VAT deductibility: typically 100%
TAX deductibility: 75%
You can deduct a taxi trip as long as you can prove the professional link. A taxi to the airport for a business trip is fine; a taxi home after dinner does not qualify. You get 75% back for income tax and 100% for VAT, provided you have a valid invoice with your own VAT number. Uber is treated as a taxi for deductibility purposes, and Uber can provide proper invoices.
Hotels
VAT deductibility: 0%
TAX deductibility: 100%
Hotel costs must be: (i) necessary for business reasons, (ii) not unreasonable, and (iii) solely for you. If your partner travels with you, those costs are not deductible. The daily allowances (for directors) that you grant yourself during a stay abroad for professional purposes are 100% deductible. Any restaurant costs clearly stated on the hotel bill are 69% deductible for income tax and are generally not deductible for VAT.
Other Travel Expenses
VAT deductibility: typically 100%
TAX deductibility: 100%
If you are travelling abroad for purely professional purposes, for example for training or prospecting, you can deduct your transport and accommodation costs. If you are self-employed through a company, you can deduct per diems under certain conditions: a lump sum covering food and other expenses. If you are self-employed as a natural person, per diems do not apply. You can deduct professional expenses with supporting documents as usual.
Key takeaways
Travel expenses are deductible only when they have a clear professional purpose.
Flights are 100% deductible for income tax; there is usually no VAT to recover.
Belgian public transport is fully deductible; your ticket is sufficient to recover VAT.
Taxis and Uber are 75% deductible for income tax and 100% for VAT with a valid invoice.
Hotel costs are 100% deductible for income tax but 0% for VAT; partner costs are never deductible.
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