When your expense is used for more than one year

In this case, the expense is classified in a specific category : fixed assets. They constitute the company's assets and are intended to be preserved. They may be tangible (car, computer, building, equipment, etc.) or intangible (website, patient, etc.).

Each year, you calculate depreciation (a pro rata amount is entered each month). This amount corresponds to the actual cost of use or, in other words, the loss in value of the fixed asset as a result of wear and tear, and is fully deductible 😉

How much depreciation can I claim on my new car, which costs €20,000 and will have a useful life (= depreciation) of 5 years ? You can deduct €4,000 of depreciation each year as a business expense.

💡 Capitalized or not ? This question always depends on the expense incurred and its use. However, an expense of more than €250 excluding VAT for an item intended to be kept for more than a year will be capitalized and depreciated.