Step-by-step guide: Encoding a new car purchase in Accountable

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Purchasing a new car for your business requires careful accounting to ensure it’s properly recorded, especially for tax reporting. With Accountable, the process is simple and efficient. This guide walks you through the steps to correctly encode a car purchase.

There are different ways to encode a vehicle, depending on how it was acquired: full purchase, financial lease, or rental. Each option has its own conditions and method of encoding in Accountable.

In this article, we focus on how to encode the full purchase of a car.

Not sure which situation applies to you? Feel free to reach out to our tax team with your documents, we’ll help you determine the correct approach.

Want to understand the differences between leasing, renting, and buying? Read our full comparison here: Leasing, renting or buying a car: which is the best option?

1. Purchasing a vehicle?

Purchasing a new car and encoding it in Accountable depends on the professional usage of the vehicle. For example, if you purchase a car and use it 80% for private purposes and 20% for professional activity, then you can only declare 20% of the expense as professional.

This means you'll only be able to deduct 20% of the VAT, and the same percentage applies to the income tax deduction.Be aware to not mix it with aAn utility car is only 100% for self activity purposes and is usually like a van that doesn't contain back seats such as the one from this picture

2. How to encode it in Accountable?

Step 1: First, add the vehicle in Accountable. This allows the app to calculate the deductibility based on the data you provide.

Step 2: Upload the purchase invoice for the vehicle.

Step 3: Fill in the required details by selecting the correct category, entering the supplier name, date, VAT, and indicating the percentage of professional usage.

Step 4: Choose the vehicle you’ve already added in Accountable to link it to this invoice.

Step 5: Set up amortisation. If it’s a new car, select 5 years. If it’s second-hand, choose 3 to 4 years depending on the mileage.

Step 6: Click "Save".

3. What if it’s a Utility Vehicle?

Purchasing and encoding a utility vehicle in Accountable is more straightforward than a regular car because these vehicles are typically considered 100% professional. If the vehicle is used exclusively for your self-employed activity, you can declare the full cost as business-related.

Utility vehicles are usually vans or commercial vehicles without rear seats. They are designed to transport tools, materials, or goods and not passengers. In this case, both VAT and income tax deductions apply at 100%, as long as the vehicle is not used privately.

4. How to encode an utility vehicle in Accountable?

Step 1: Upload the purchase invoice directly in Accountable.

Step 2: Fill in the required details by selecting the correct utility vehicle category, entering the supplier name, invoice date, VAT, and confirming 100% professional usage.

Step 3: Set up amortisation. Choose 5 years if it’s new, or 3 to 4 years for second-hand depending on mileage.

Step 4: Click "Save".

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 ?