Workwear
Workwear is 100% deductible. But in order to be able to deduct clothing from income or corporation tax and recover input tax (VAT), it must fall under the definition of work clothing.
Definition of workwear
Work clothing is clothing purchased for yourself that, according to the Tax Authorities:
- is (almost) exclusively suitable for wearing during work;
- or bears one or more clearly visible figurative marks linked to the undertaking with a total surface area of at least 70 cm².
Footwear and accessories are also considered clothing and can therefore also be work clothing. With 'other clothing' you have to think of clothing that you can wear both business and private. Clothes that you use for work, but that are worn by others in daily private life, are 'other clothes'. No deduction is therefore possible for this. A neat suit or a pair of shoes to wear to customers is therefore not deductible.
Strict assessment of external spending costs
Entrepreneurs regularly make costs for corporate clothing indirectly contribute to business operations, but overlap with personal purposes. These grey areas often cause confusion: because when are they deductible or not? The ruling in a court case at the Court of Appeal in Amsterdam in 2020 reflects that there is a strict judgment. An actress's claim to deduct costs for hairdressing and cosmetics from her taxable income (because, according to her, necessary for the exercise of her profession) was rejected. The appearance achieved by hairdresser and cosmetics was not only presentable within the working atmosphere (you can read the full statement here)
Workwear presenters, athletes and artists
If you are performing as an artist or as a presenter or if you are a professional sportsperson, then the costs for clothing related to practicing your profession or sport above a certain threshold are deductible!
If you want to demonstrate that you only make costs for external care professionally, then you can justify this if you act as an artist or as a presenter or if you are a professional sportsperson by showing that these costs exceed a threshold for personal purposes. Costs for personal care above this amount in connection with the exercise of your profession are deductible above this threshold. The Income Tax stipulates that for artists, presenters and professional athletes their appearance or body is so important that care costs are deductible.
An artist is someone who performs a performance that is viewed or listened to by the public. But also for artists, the clothing that could also be worn separately from the exercise of the profession is not deductible. It must therefore be special clothing, such as specific clothing for the stage or special outfits that you only wear during an audition or premiere.
Read more
Are you unsure whether costs are deductible? In this overview, the Tax and Customs Administration lists a number of common 'grey areas' in business costs. In this article we describe how costs for (business) personal care are assessed as (whether or not) deductions are assessed by the tax authorities. Do you make business purchases for which you do not receive a personal invoice, but a receipt? Check here whether you can enter this as a deduction. Or contact us if you have any questions. We are happy to help you.
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