How to deduct starting costs in your income tax and VAT return
- 7 October 2025
- Edited 18 September 2026
- 4 min
- Finance
- Starting
- KVK Editors
Are you spending money for the start of your business? Costs for a laptop, tools, or training, for example? You can deduct some of these costs from your income tax return. And sometimes get a VAT refund. This article explains what starting costs are, when you can deduct them, and how to get a refund on the VAT you paid for them.
What do you need to arrange when starting a business?
Answer the questions on Business.gov.nl and see the steps that are important in your situation.
Money you spend on business expenses before you officially start your business is called starting costs (aanloopkosten). You are allowed to deduct these costs when you file your income tax return. And in some cases, you can also get a refund for the VAT you paid on these costs. You do this in your VAT return, also called the turnover tax return.Â
What are starting costs?
Starting costs are all the business costs you make before you officially start your business. Do you buy something you also use privately? Then you are either partly allowed to deduct this as a starting cost, or not at  (Belastingdienst website, in Dutch). You may only deduct the business part from your profit. Here are some examples of things you can or cannot deduct:
| You can deduct | You cannot deduct |
|---|---|
| Work laptop | Clothing (only protective workwear is allowed) |
| Course or training for your business | Driving licence |
| Registration KVK |
Gifts for family or friends |
Are you not sure whether a cost is deductible? Ask your accountant or bookkeeper for advice. Or ask yourself: would I buy this if I did not have a business? If the answer is yes, you can usually not deduct the costs.
Deducting or depreciating costsÂ
You do not put all starting costs in your administration in the same way. It depends on how much you have to pay and how long you use the product or service.
Deducting costs
Do you buy something for €450 or less? Than you can deduct these costs from your profit in 1 tax return.
Example:
You have a website made for your new business for €400 in March 2026. In September 2026, you register at KVK. You can deduct this €400 when you file your income tax return for 2026 in 2027.
Depreciation: writing off costs
Anything costing more than €450* that you use for longer than a year is an investment. You must write these costs. This means you deduct a part of the cost each year you use the product.
*: excluding VAT - unless you are not allowed to deduct VAT (for instance, because you use the KOR scheme).
Example:
You buy a machine for €25,000 in January 2026. You can use this machine for 5 years and after that it will still be worth €5,000. You deduct this residual value from the purchase price: €25,000 - €5,000 = €20,000.
Then divide this amount by the number of years you can use the machine: €20,000 / 5 = €4,000. So, you can deduct €4,000 from your profit each year for this machine.
Please note: you are usually allowed to a maximum of 20% of the purchase costs per year.
Do you buy something later in the year, for example in September? Then you can only deduct costs for the reamining months of the year. So, from September through December.
When can you deduct starting costs?
After you register at KVK, the Netherlands Tax Administration will inform you if you must file an income tax return as an entrepreneur. If so, you can deduct the starting costs from your (in Dutch). You usually do this in your first income tax return. You have to be able to prove that the costs are directly related to the start of your business. So, make sure you always save your receipts and invoices. More about this later.
Do not wait too long to deduct your starting costs
We advise you to deduct your starting costs as soon as possible, so, in your first income tax return. The longer you wait, the more difficult it becomes to prove the costs were really business costs.Â
Deduct starting costs with or without VAT?
Have you already reclaimed the VAT in your VAT return? Then deduct the starting costs without VAT.
Did you not ask for a VAT refund, but were you allowed to? Or can you not ask for a VAT refund? Then deduct the costs including VAT.
When can you not ask for a VAT refund?
This applies, for example, if you make use of the Small Businesses Scheme (KOR). In that case, you do not file a VAT return. And so cannot apply for a VAT refund in that way.Â
Another option is that you work in a profession that does not have to pay VAT. Some professions, services, and products are exempt from . Examples are health care, education, social-cultural work, financial services, and sporting clubs.Â
Ask for a VAT refund on starting costs
You can usually claim back the VAT on starting costs up to 6 months after the end of the year in which you incurred the costs.
When can you ask for a VAT refund?
You can only claim back VAT if you also charge VAT to your customers. You cannot therefore claim back VAT if you are registered under the KOR scheme or if you are not required to pay .
You pay VAT on your starting costs. The Netherlands Tax Administration refers to this as ‘input tax’. You can claim this VAT back once you have received your VAT-ID from the Tax Administration. You will usually receive your VAT-ID within 2 working weeks of your registration with KVK.
You claim back VAT in your first VAT return (turnover tax return). This may also include costs you incur before your business starts trading – in other words, your starting costs. This applies to the period before and immediately after your business starts trading.
What is the difference between deducting costs and asking for a VAT refund?
Although there is sometimes some overlap, deducting expenses and claiming back VAT are two different things:
- You deduct expenses when you file your income tax return. You do this once a year.
- You claim back VAT via your VAT return. You usually do this quarterly.
What do I need to deduct the costs?
Keep all receipts and invoices. Make sure they always show these details:
- the date you bought the product or service
- the name and address of the seller
- your name or the name of your business
- a description of what you bought
- the price
- the amount of VAT you paid
Keeping track of your hours
Also record the hours you spend preparing to start your business. These count towards the hours criterion. This way, you may qualify for even more tax benefits for , such as tax relief for new companies or the private business ownership allowance.
Do you incur travel expenses preparing to start your business? Then record how many kilometres you have travelled and for what purpose. These records are useful for your tax return.
