Deduct road and registration taxes for your car

Yes! The cost of the vehicle registration tax and road tax are tax-deductible to the same extent as your company car or vehicle is.

If your car is 70% tax-deductible, then the same principle applies to the tax on entry (registration fee) and road tax (road tax).

This is nice, because both bills can sometimes be very disappointing – especially since you pay these costs without really getting anything in return.

The deduction percentage for your car and car expenses

The maximum tax deduction rate for your car depends on two factors:

1. A formula based on your car’s CO2 emissions: 120%- (0.5% x [coefficient] x CO2 )
2. The professional use.

Suppose using the formula you arrive at a maximum deductibility of 90% and you use the car for professional purposes 80% of the time, then the tax deductibility is 72% (80% of 90%). Do you use the car solely for professional purposes? Then the maximum tax deductibility in this case is 90%.

Note that commuting to your personal office (not the one of your client) is not considered professional use by the tax authorities.

You can extend this maximum tax deductibility to almost all of the expenses associated with your car, including the occupancy tax and annual road tax.

Learn more about your car’s maximum deduction percentage here.

Registration tax

The registration tax is a one-time tax that every owner (you as an individual or your company) of a new or used motor vehicle must pay. You pay this tax to use the public roads in Belgium.

You receive the tax automatically after the purchase of your car. Exactly how much this tax depends on, among other things, the type of vehicle, the fuel type, the CO₂ emissions, the Euro standard, and the date of first registration of your car.

The road tax is paid once per vehicle and is tax-deductible to the same extent as your other car expenses are.

Road tax

After your company car is officially registered and you have paid the registration tax, you will also have to pay the annual road tax. You will receive this invoice automatically and this tax again depends on, among other things, the type of car, CO₂ emissions, Euro standard, etc.

You can deduct the road tax as a professional expense at the same rate as your company car.

Other car expenses

Other car expenses, such as car accessories, your car insurance, the interest on your car loan, fuel, electricity for charging, repair, and maintenance are also tax deductible. You can naturally read all about it, here at deductibles.be. ✨