{"id":15219,"date":"2023-04-17T15:52:56","date_gmt":"2023-04-17T15:52:56","guid":{"rendered":"https:\/\/www.accountable.de\/deductions\/leasing-or-renting-a-utility-vehicle\/"},"modified":"2023-04-17T15:52:56","modified_gmt":"2023-04-17T15:52:56","slug":"leasing-or-renting-a-utility-vehicle","status":"publish","type":"deduction","link":"https:\/\/www.accountable.de\/en\/deductions\/leasing-or-renting-a-utility-vehicle\/","title":{"rendered":"Deduct the leasing or renting of a utility vehicle"},"content":{"rendered":"\n<h2 id=\"the-deduction-for-utility-vehicles-is-very-advantageous-in-belgium\" class=\"wp-block-heading font-degular scroll-mt-32\">The deduction for utility vehicles is very advantageous in Belgium.<\/h2>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">In fact, as you probably know, as a self-employed, <strong>you can deduct 100% of the costs associated with a utility vehicle<\/strong>. For more information on the principles governing the deduction of expenses relating to utility vehicles (and all the relevant recommendations \u2728 ), we invite you to read <a class=\"font-inter text-purple underline underline-offset-1\" href=\"https:\/\/www.deductibles.be\/utility-vehicle\">this article<\/a>.<\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">Finally, before we talk about the tax deduction for leasing and other renting, it\u2019s worth making sure that your vehicle meets the definition of a utility vehicle according to the FPS Finance: you can find the definition of utility vehicles <a class=\"font-inter text-purple underline underline-offset-1\" href=\"https:\/\/financien.belgium.be\/nl\/particulieren\/vervoer\/inschrijving_en_belastingen\/lichte_vrachtauto\" target=\"_blank\" rel=\"noreferrer noopener\">here on their website.<\/a><\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">Now, let\u2019s discuss the deduction of leasing and renting for utility vehicles.<\/p>\n\n\n\n<h2 id=\"opting-for-leasing-or-renting-does-not-affect-the-deductibility-of-your-utility-vehicle-but-it-can-have-a-major-impact-on-the-amounts-deducted-in-the-first-year\" class=\"wp-block-heading font-degular scroll-mt-32\">Opting for leasing or renting does not affect the deductibility of your utility vehicle, but it can have a major impact on the amounts deducted in the first year.<\/h2>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">The way you finance your vehicle does not affect its deductibility: you simply deduct 100% of the costs relating to the expense \u2013<em> whatever the expense may be.<\/em><\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">That said, the accounting for the purchase of your van is not the same:<\/p>\n\n\n\n<ul class=\"wp-block-list list-disc list-outside ml-0 mb-4 space-y-2\">\n\n<li class=\"font-inter text-base text-black\">With <strong>leasing<\/strong>, as with business loans, you deduct only the interest on the lease and write off the purchase over the term of the contract. You do not deduct the purchase AND the repayment of the loan \ud83d\ude09.<\/li>\n\n<\/ul>\n\n\n\n<ul class=\"wp-block-list list-disc list-outside ml-0 mb-4 space-y-2\">\n\n<li class=\"font-inter text-base text-black\">With <strong>renting<\/strong>, you deduct the entire monthly payment. There is no purchase and therefore no amortization.<\/li>\n\n<\/ul>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">In practice, therefore, the amounts deducted over the life of the vehicle are similar.<\/p>\n\n\n\n<h3 id=\"if-you-acquire-a-vehicle-at-the-end-of-the-year-the-method-of-financing-will-potentially-have-an-influence-on-the-amounts-deducted-in-the-first-year\" class=\"wp-block-heading font-degular scroll-mt-32\">If you acquire a vehicle at the end of the year, the method of financing will potentially have an influence on the amounts deducted in the first year.<\/h3>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">This is where the method of financing will have an influence on your tax, and renting can be very interesting.<\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">Unlike leasing, where it is the depreciation that determines the deductible amounts, by opting for <strong>renting<\/strong>, it is <strong>the payments made that are deductible.<\/strong><\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">If you start renting at the end of the year (e.g. on 24 December), and you make an initial exceptional payment of \u20ac10,000 (at your request), for example, it is this \u20ac10,000 that is tax deductible for your current year.<\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\"><em>If you have a profit, you\u2019re making an excellent tax bargain and reducing your tax base by \u20ac10,000. Let\u2019s hear it\u2026.<\/em><\/p>\n\n\n\n<h3 id=\"remember-in-all-cases-cash-is-king-%f0%9f%91%91\" class=\"wp-block-heading font-degular scroll-mt-32\">Remember, in all cases, cash is king \ud83d\udc51<\/h3>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">When buying your vehicle, absolutely consider the financial issues:<\/p>\n\n\n\n<ul class=\"wp-block-list list-disc list-outside ml-0 mb-4 space-y-2\">\n\n<li class=\"font-inter text-base text-black\">Do I have the cash available to buy or am I forced to finance its purchase?<\/li>\n\n\n<li class=\"font-inter text-base text-black\">Is this a good use of my cash or could I use it more efficiently?<\/li>\n\n\n<li class=\"font-inter text-base text-black\">What are the terms of the contract? Monthly repayments? The residual value? Interest rates? The trade-in value? And so on.<\/li>\n\n<\/ul>\n\n\n\n<h2 id=\"are-you-still-hesitating-between-leasing-and-renting-your-van\" class=\"wp-block-heading font-degular scroll-mt-32\">Are you still hesitating between leasing and renting your van?<\/h2>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">In Belgium, there are 2 major differences between leasing and renting:<\/p>\n\n\n\n<ul class=\"wp-block-list list-disc list-outside ml-0 mb-4 space-y-2\">\n\n<li class=\"font-inter text-base text-black\"><strong>Services included<\/strong>: renting contracts often include the cost of registration, replacement vehicle, etc., whereas leasing contracts do not. \u2013 Leasing contracts do not. So be sure to analyze the contract you are offered.<\/li>\n\n<\/ul>\n\n\n\n<ul class=\"wp-block-list list-disc list-outside ml-0 mb-4 space-y-2\">\n\n<li class=\"font-inter text-base text-black\"><strong>Purchase option:<\/strong> with a leasing contract, you often have the option of buying your utility vehicle at a set percentage at the end of the contract. This is not generally the case with renting contracts.<\/li>\n\n<\/ul>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">The decision is therefore purely financial \u2013 not fiscal \u2013 and will depend on the offer you receive. <em>Happy bargain hunting<\/em> \ud83d\ude09.<\/p>\n","protected":false},"featured_media":0,"template":"","deduction_tag":[549],"class_list":["post-15219","deduction","type-deduction","status-publish","hentry","deduction_tag-vehicle"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Deduct the leasing or renting of a utility vehicle | Accountable<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.accountable.de\/en\/deductions\/leasing-or-renting-a-utility-vehicle\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Deduct the leasing or renting of a utility vehicle | Accountable\" \/>\n<meta property=\"og:description\" content=\"The deduction for utility vehicles is very advantageous in Belgium. 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