Is a handbag or suitcase tax-deductible for business purposes?

A suitcase or briefcase can be tax-deductible as a business expense, but certain tax conditions apply.

• The deductibility depends on the professional use of the bag or suitcase.
• VAT is only fully deductible if the item is used exclusively for business purposes.
• Some types of bags or suitcases are easier to justify than others.

When is a suitcase or bag tax-deductible for business?

As a self-employed professional, you may need a bag or suitcase for work, but can you always deduct it from your taxes?

The tax authorities mainly consider the professional use of the bag or suitcase.

• If it is used solely for business, it is 100% deductible.
• If there is partial personal use, only a reasonable percentage is deductible.

To make this assessment, tax authorities also look at the type of bag.

Which bags are deductible as a business expense?

• Laptop bags and business briefcases are usually 100% deductible.
• Document cases are fully deductible if used exclusively for work.
• Suitcases and carry-on luggage are only 100% deductible if you can prove they are used solely for business trips.
• Handbags and regular backpacks are generally not deductible unless they serve a clear professional function.

A laptop bag used exclusively for work is fully deductible. A suitcase that you also take on holiday can only be partially deducted.

And that designer handbag… best not to include it in your accounts. 😉

💡 In the Accountable app, you can log the expense under Administration fees > Office supplies.

What about VAT deductibility for luggage?

VAT on the purchase of a bag or suitcase is only deductible if it is used exclusively for business purposes.

If you plan to use it for personal purposes (mixed cost) as well, the VAT deduction is limited accordingly.