How to recognize a valid invoice for VAT deduction

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.

Second check: Is your invoice complete?

You can only deduct VAT if your invoice contains all the mandatory information:

1. The word “invoice”

2. Name and VAT number of the supplier

3. Invoice date

4. Description of the goods or services

5. Amount excluding VAT, applied VAT rate, and VAT amount

6. Name of your business, and your VAT number

7. Invoice number

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.

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.

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 (read more).

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.

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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.