Cost or investment? The €450 rule

A purchase for your business is a cost or an investment. The difference decides how quickly the expense lowers your profit.

Less than €450: a cost straight away

Do you buy a business asset for less than €450? Then you deduct the amount in one go as a cost. (Belastingdienst: depreciation)

€450 or more: depreciate

Does it cost €450 or more and last longer than a year? Then it is a business asset. You spread the cost over the years that you use it. This is called depreciation (see depreciation).

Which amount counts?

• You look at the price without the VAT that you can deduct.
• You look at each business asset, not at each invoice.
• Things that you only use together, such as a desk with a fixed attachment, are counted together.

Why it matters

An investment of €450 or more can count towards the KIA (small-scale investment deduction). If you sell it later, a disposal (desinvestering) may follow.

In ZZPboek

For a purchase of €450 or more, the app suggests making it a fixed asset. You choose the useful life and the residual value. After that, the app books the depreciation each year.