Sebastian de Goeij
Reviewed by Petter Creemers, Tax adviser, direct and indirect taxesShort answer
A purchase that lasts several years and costs €450 or more is generally not booked as an expense but capitalised as a fixed asset and depreciated. Autoboeker flags invoices with a possible fixed asset above €450, such as a laptop, phone or machine, and never processes them automatically. You or your client decide whether it is an investment and book it to an asset account.
Key takeaways
- Durable purchases of €450 or more are generally capitalised and depreciated.
- Autoboeker shows Fixed asset detected and never books such an invoice automatically.
- In doubt, ask the client with a client question.
- Depreciation and investment allowance are handled in the ledger or at year-end.
What is the difference between a fixed asset and an expense?
Expenses are used up in the year of purchase. A fixed asset is used for several years, such as a laptop, van or machine, and its cost is spread over its useful life through depreciation. For Dutch tax profit, assets under €450 each, excluding VAT, may be expensed immediately; from €450 they are generally capitalised. Check investment allowance at year-end; its thresholds change annually.
| Example | Useful life | Amount excl. VAT | Usual treatment |
|---|---|---|---|
| Toner and paper | Consumed | €120 | Expense |
| Laptop | Several years | €1,150 | Capitalise and depreciate |
| Monitor | Several years | €290 | Expense (under €450) |
| Van | Several years | €32,000 | Capitalise and depreciate |
How does Autoboeker recognise a possible fixed asset?
It flags invoices that may contain a fixed asset above €450 with the message Fixed asset detected. Such invoices are never processed automatically, even at a high confidence score.
What do you do when the message appears?
Assess the invoice and book it to the right account.
- 1Check whether the item lasts several years and costs €450 or more excl. VAT.
- 2If it is an investment, choose an asset account.
- 3In doubt, send the client a client question.
- 4Process the booking.
- 5Record depreciation method and period in the ledger.
What about VAT on a fixed asset?
VAT on a fixed asset is generally deducted in the period of purchase, to the extent the asset is used for VAT-taxable supplies. Mixed private use or exempt supplies follow additional rules.
FAQ
Questions about this topic.
For Dutch tax purposes, assets under €450 each excl. VAT may be expensed; from €450 they are generally capitalised.
No. A possible fixed asset above €450 is flagged and never processed automatically.
No, depreciation is handled in the ledger or at year-end.
Yes, with an invoice client question.
