When it comes to company vehicles, replacing a passenger car with a light commercial vehicle offers various tax advantages: 100% tax deduction, lower road tax, and higher VAT deduction. Discover all the benefits of light commercial vehicles and how they differ from passenger cars.
Vans and pickup trucks are among the most common light commercial vehicles (LCVs). By law, a vehicle must respect the following requirements to be recognised as a light commercial vehicle:
In Belgium, it often makes more sense tax-wise to buy a light utility vehicle as a company car than a passenger car.
Here are the main differences between passenger cars and light commercial vehicles:
| Light commercial vehicles | Passenger vehicles | |
| Deductibility of expenses | 100% deductible if use is fully professional | 0 to 100% depending on CO2 emissions |
| VAT | up to 100% deductible if use is fully professional | up to 50% (also if use is fully professional) |
| Benefit in kind (BIK) | no BIK if use is fully professional; simplified BIK calculation if mixed use | BIK always applicable and calculated based on catalogue value, CO2 emissions and age |
| Road tax | lower | higher based on engine power and emissions |
| Registration tax | no registration tax | higher based on engine power and emissions |
In 2026, it’s still worth considering a van as a company car.
Good news: even for a light commercial vehicle, the maximum tax deductibility of 100% applies.
Depreciation is calculated on the purchase price of the used vehicle, not on the original new price. The depreciation period (5 years for a new vehicle) depends on the remaining economic life.
Example:
You buy a 3-year-old second-hand light commercial vehicle for €15,000. You use it 100% for your business, and the expected remaining useful life is 2 years. You depreciate the truck linearly over 2 years, at €7,500 per year.
For a light commercial vehicle, it's crucial that you can demonstrate professional use.
Unlike heavy goods vehicles (over 3,500 kg), where the tax authorities automatically assume professional use, the burden of proof for light commercial vehicles lies entirely with you as the user.
This means you must maintain clear records:
If you also use the light commercial vehicle privately, you must calculate this percentage correctly and exclude the non-deductible costs. The tax authorities monitor this strictly, so proper preparation saves you unpleasant discussions afterwards.
A light commercial vehicle can be a good option if you're a self-employed sole trader or run a small business. The tax benefits speak for themselves.
Do you need to transport goods for deliveries, site visits, or other professional reasons? Then a light commercial vehicle is both practical and tax-efficient.
The tax authorities closely monitor abuses of the system. Make sure you register your vehicle with the DIV (Directorate for Vehicle Registration) and that you can provide proof of the private and professional use in the event of mixed use.
In Accountable, you can add your vehicles and all the related expenses. We then calculate deductibility, VAT, and the impact on your taxes.
Author - Artyom Ghazaryan
Artyom is Head of Accounting at Accountable, and a chartered Accountant & Tax Specialist.
Who is Artyom ?Thank you for your feedback!
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