(Same conditions apply as in the ‘Computer hardware & tangible assets’ section above.)
Need a desk, chair, or storage for your business? You may be able to deduct these costs!
Immediate Deduction (Under €450 excl. VAT)
✔ Items under €450 (excluding VAT)? → You can fully deduct the cost immediately in the year of purchase.
✔ Can you reclaim VAT? → Yes, in the quarter of purchase.
Depreciation (Over €450 excl. VAT)
✔ Items over €450 (excluding VAT)? → You cannot deduct the full cost in one go.
✔ You must spread the deduction over multiple years (standard: 20% per year).
✔ Can you reclaim VAT? → Yes, immediately in the quarter of purchase.
Extra Tax Benefit: Small-Scale Investment Deduction (KIA)
Did you invest more than €2,901 in business assets in one year?
Then you might qualify for an additional tax deduction under the Small-Scale Investment Deduction (KIA).
How to Justify These Expenses?
✔ An invoice in your business name (including VAT number and address).
✔ Proof that the purchase is business-related (if used privately, only the business percentage is deductible).
✔For VAT reclaim: Make sure the VAT amount is separately mentioned on the invoice.
💡 Bought it from an online platform like Temu/ Amazon? Ensure a proper VAT invoice.
Summary
Purchase Price (excl. VAT) | Income Tax Deduction | VAT Deduction? |
Under €450 | Fully deductible in the year of purchase | ✅ Yes, immediately reclaimable |
Over €450 | Must be depreciated (max. 20% per year) | ✅ Yes, immediately reclaimable |
Over €2,901 (total per year) | Additional deduction via KIA possible | ✅ Yes, immediately reclaimable |
Frequently Asked Questions
Can I deduct second-hand furniture?
Yes! The same rules apply. If the item costs under €450, it is fully deductible. If it costs over €450, it must be depreciated.
What if I use the furniture for both business and personal use?
You can only deduct the business percentage. If you use a desk 70% for business and 30% for personal use, you can only deduct 70% of the cost.
Are there any furniture items I cannot deduct?
Land and real estate cannot be depreciated. Also, furniture bought for resale is not considered a business asset.
🚀 Important points to remember
- Under €450? Deduct immediately.
- Over €450* Depreciate over 5 years.
- VAT? Always reclaimable immediately, even for depreciated assets.
- Large investments? Check if you qualify for the KIA deduction.
- Documentation? Keep records.