This article explains how to find the tax impact of an expense in general, and more specifically, the tax impact of an expense related to your vehicle. We'll also look at calculating the tax deductibility of different types of vehicle, as well as VAT deductibility.
A. Click on the relevant expense:
B. Once the expense is open, scroll down the right-hand side of the screen and click on “Show tax impact”:
C. Expense tax impact:
A. Click on the relevant expense:
B. Once the expense is open, scroll down the right-hand side of the screen and click on “See tax impact”:
C. Expense tax impact:
🚨 🚨🚨 As from 1 January 2026, vehicles with an internal combustion engine ordered from that date onwards will no longer be tax deductible in Belgium. |
To find out the tax-deductible percentage of your vehicle expenses, you need to apply a formula. It depends on the type of vehicle and the date of purchase.
The formula looks like this:
120% – (0.5% x [coefficient] x CO2)
Where the coefficient is:
Diesel | 1 |
Petrol, LPG, Biofuel, electric | 0.95 |
Compressed natural gas | 0.90 |
🚨 🚨 Although deductibility depends on the type of vehicle and the date of purchase, it's important to highlight that deductibility also depends on the % of professional use. |
For instance, a self-employed individual in a secondary occupation will use the car less for business purposes than one in a primary occupation. Suppose you calculate a tax deductibility of 80%, but you use the car 40% of the time for private purposes; then the overall deductibility would be 48% (60% of 80%).
💡 Accountable does the math for you: All you have to do is enter your vehicle's data into the app and indicate a pro usage % to your expenses + link the vehicle to each of your expenses related to that vehicle. |
Here is the information you need to enter to register your vehicle and link it to expenses:
🔌 Vehicule ar purchased from 01/01/2020 | 🔌 Vehicule purchased from 01/01/2023 | 🔌 Vehicule purchased from 01/01/2027 | 🔌 Vehicule purchased from 01/01/2031 | |
Tax deductibility | Max. 120 % | Max. 100 % | Max. 95 % | Max. 67,6 % |
The same applies to electric bikes.
In most cases, you amortize the purchase of your new electric car over 5 years, at a rate of 20% per year. Electric cars purchased or ordered before 2027 remain 100% tax-deductible for the full amortization period.
This means that you can still tax deduct an electric car at 100% until 2027 - 🚨 provided that its professional use is equivalent. |
For electric cars purchased or ordered from 1 January 2027, the maximum tax deductibility will look like this:
Year | % |
2027 | 95% |
2028 | 90% |
2029 | 82.5% |
2030 | 75% |
2031 | 67.5% |
💡 The depreciation percentage does not decrease, unlike for non-electric cars. If you buy an electric car in 2028 and depreciate it over 5 years, then the maximum tax deductibility remains 90% throughout that period. The percentage does not decrease over the years. |
Hybrid purchased after 2018 and before 07/01/2023 | Hybrid purchased from 01/01/2025 | Hybrid purchased from 2026 | Hybrid purchased from 2027 | Hybrid purchased from 2028 | |
Tax deductibility | Still depending on the formula* | Capped at 75%** | Capped at 50%*** | Capped at 25%*** | 0%*** |
* If you purchased a hybrid car after 2018 and before 1 July 2023, nothing changes in terms of deductibility. In this case, the tax deductibility of your hybrid car is determined according to the formula based on the car’s CO2 emissions:
120% – (0.5% x 0.95 x CO2)
→ For example, if you, as a self-employed individual, bought a hybrid car with emissions of 50 g/km, then the tax deductibility amounts to 95%.
**🚨 From 1 January 2025, the maximum deductibility of your hybrid car will only be 75%, even if your car was, for example, 95% tax-deductible in 2023 and 2024. The formula helps you determine the tax deductibility, but the 75% ceiling must be respected from 1 January 2025. The maximum deductibility will also continue to decrease after 2025.
***🚨 For hybrid cars purchased between 1 July 2023 and 1 January 2025, the tax deductibility is also calculated according to the above formula. During this period, the maximum deductibility is 100%, and the minimum deductibility is 50%. But even in this case, from 1 January 2025, the tax deductibility will be limited to a maximum of 75%. This percentage will be further reduced in 2026 (50%), 2027 (25%), and 2028 (0%).
If you buy a hybrid car after 07/01/2023, the maximum deductibility is 100% and the minimum deductibility is 50%.
If you buy a hybrid car after January 1ᵉʳ, 2025, the maximum tax deductibility is 75%. But beware, as this percentage will be reduced again in 2026 (50%), 2027 (25%) and 2028 (0%).
At the beginning of 2024, you buy a hybrid car with a tax deductibility (calculated according to the gram formula) of 80%. Assuming you depreciate your car over 5 years, at a rate of 20% per year, it would look like this:
The first depreciation in 2024 is at 80%
The second depreciation in 2025 is at 75%
The third depreciation in 2026 is at 50%
The fourth depreciation in 2027 is at 25%
The last depreciation in 2028 is at 0% → no deduction possible anymore
⚠️ Note that fuel for hybrid cars is only deductible up to a maximum of 50%! |
The ‘classic’ cars with a combustion engine, running on fuels like diesel, petrol, or LPG, are becoming increasingly less interesting. The deductibility is calculated in the same way as for hybrid cars, namely using the CO2 emissions formula:
120% – (0.5% x [coefficient] x CO2)
Where the coefficient is:
Diesel | 1 |
Petrol | 0.95 |
Compressed natural gas | 0.90 |
🚨 For cars with a combustion engine purchased or ordered from 1 July 2023, the maximum deductibility will be limited to only 75% in 2025, to 50% in 2026, to 25% in 2027, and to 0% in 2028, even if your car and its costs were tax-deductible at 80% in 2023 and 2024.
The tax deductibility of cars purchased between 1 July 2023 and 1 January 2025 is also calculated according to the CO2 emissions formula. During this period, the maximum deductibility is 100%, and the minimum deductibility is 50%.
From January 1, 2025, the tax deductibility will be a maximum of 75% and a minimum of 0%. But beware, because this percentage will be further reduced in 2026 (50%), 2027 (25%), and 2028 (0%).
You buy a petrol car early in 2024 with a tax deductibility (calculated according to the CO2 emissions formula) of 70%. Assuming you depreciate your car over 5 years, at 20% per year, then it looks like this:
The first depreciation in 2024 is at 70%
The second depreciation in 2025 is at 70%
The third depreciation in 2026 is at 50%
The fourth depreciation in 2027 is at 25%
The last depreciation in 2028 is at 0% → no deduction possible anymore
→ VAT is deductible at the legal flat rate of 35% (possibility of deducting up to a maximum of 50%).
→ VAT is deductible at 100%. Please note: in this case, the % of professional use is 100% and therefore the vehicle is only used for professional purposes and concerns a certain sector of activity (Uber, Deliveroo, etc.).
→ VAT can be deductible up to 100% (depending on the vehicle's % pro use).
Author - Valesca Wilms
As content marketing lead at Accountable Belgium, Valesca writes about freelancing, self-employment, and taxes based on her own experience as a freelancer.
Who is Valesca ?Thank you for your feedback!
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