To deduct VAT on a business purchase, you need a valid invoice that meets all legal requirements. If your invoice is incomplete, the tax authorities can refuse your deduction, even if the purchase was genuinely for your business. This article explains what makes an invoice valid, how to handle receipts, and how to record everything correctly in Accountable.
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.
In this article, you will also find a checklist for VAT deduction and answers to frequently asked questions about deductible expenses.
Why correct invoices matter
Want to reclaim VAT? Your invoice must be fully compliant. If anything essential is missing, such as the supplier's VAT number, the tax authorities can refuse your deduction, even if you actually received the service.
The result? You must repay the VAT, often with fines and interest on top.
Two essential checks for VAT deduction
Planning to deduct VAT? Always verify these two conditions first. This way, you avoid mistakes and ensure you get the maximum benefit.
First check: Is the purchase truly business-related and relevant to your activity?
You can only deduct VAT on expenses that are directly linked to your professional activity.
Used entirely for business purposes? Deduct 100% of the VAT.
Also used privately? Deduct only the business-use percentage.
How to set the professional use percentage in Accountable
Go to Expenses in Accountable (app or web version).
Open or create the expense for which you want to set the professional use percentage.
Find the Professional Use field.
Enter the percentage that reflects professional use (e.g. 100%, 75%, 50%).
Accountable automatically calculates the amount of VAT and expenses you can deduct.
Second check: Is your invoice complete?
You can only deduct VAT if your invoice contains all the mandatory information:
The word “invoice”
Name and VAT number of the supplier
Invoice date
Description of the goods or services
Amount excluding VAT, applied VAT rate, and VAT amount
Name of your business, and your VAT number
Invoice number
Example of a correct invoice
Important: If any of these details are missing, you cannot deduct the VAT. You can still record the full amount (including VAT) as a business expense for your personal income tax.
What if you do not have an invoice?
Sometimes you only receive a receipt or sales slip. Good to know: you can still record this as a business expense for your personal income tax, but you cannot reclaim the VAT.
Remember this:
Small expenses? No problem, just keep them and record them.
Large expenses? Request an official invoice to get the maximum benefit from your purchase.
How to indicate this in the app
Yes → Official invoice: Accountable calculates your VAT deduction.
No → Receipt or sales slip: Accountable records it as an expense (without VAT deduction).
On the web version
In the mobile app
✅ Checklist: for VAT deduction
The purchase is genuinely for your business.
The invoice contains all mandatory information.
You have correctly entered the professional usage percentage.
Q&A: Frequently asked questions about VAT deduction and taxes
Can I deduct my vacation?
No, personal vacations are not deductible for VAT or income tax purposes, as they are not related to your professional activity.
If you are on a business trip, it is different. The deduction must be calculated proportionally: for example, if you work 7 out of 10 days during the trip, you can deduct 70% of the expenses. The same principle applies to additional costs such as accommodation, transportation, and meals.
Can I deduct my loan repayments?
The repayment of the loan principal (capital repayment) is not deductible for VAT and cannot be recorded as a business expense. However, interest payments may be deductible for income tax purposes, provided the loan is used for your professional activity.
Can I deduct VAT?
Yes, but only if the purchase is linked to your professional activity and the invoice fully meets the legal requirements. VAT is not an expense, but a tax that, if deductible, you reclaim through your VAT return. This also applies to import VAT on goods from outside the EU, provided you have the official customs document (how to record expenses from outside the European Union).
Can I deduct income tax?
No, you cannot deduct income tax as an expense. Taxes themselves are generally not deductible business expenses, except in specific cases, such as certain professional contributions or municipal taxes.
Can I deduct electricity and utilities?
Yes, but only the professional portion. 👉 Rules for deducting a home office space
What is the difference between an invoice and a receipt?
Invoice: An official accounting document with the mention "invoice" (or translation) that contains all mandatory details of both the supplier and the client, including VAT numbers. VAT can be deducted if the invoice is complete and the purchase is business-related.
Receipt: Proof of payment that usually only includes the supplier's VAT details. VAT cannot be deducted, but the total amount including VAT can still be recorded as a deductible expense for income tax purposes.
Key takeaways
To deduct VAT, your invoice must be complete and legally compliant, a receipt is not enough.
Always set the correct professional use percentage in Accountable so the right VAT and expense amounts are calculated automatically.
If you only have a receipt, you can still record the full amount (VAT included) as a deductible business expense for income tax, but you cannot reclaim the VAT.
VAT is not a cost but a tax you reclaim through your VAT return, provided all conditions are met.
Need help? Chat with us or email support@accountable.eu, we're happy to help.