[mcv]

I'm (Dutch) self-employed, which means I have my own one-man company, and as such, I can get my VAT back for stuff I buy for my business. Of course I also have to charge VAT for my services again, so that's expected to include the VAT for the stuff I bought.

But it does create a massive tax loophole: because I'm a software developer, I can deduct the costs of any computer I buy, but nobody is checking whether I actually use it for work or for gaming. I can deduct work lunches, but employees can't. I know someone who deducted his motorbike because he also used it for work. I can deduct phone and internet costs because I also use them for work.

I find the way I can avoid some taxes that others can't, rather questionable. Frankly, everybody should have their own company to avoid this inequality. And the stuff I can deduct is small potatoes compared to the stuff I'm sure some other people are deducting. I'm no tax expert, but I'm sure this is a big part of why billionaires pay so little tax.

Also, companies on the edge of the health care system have a problem, because health care is VAT free, so health care companies cannot get the VAT back they have to pay to their suppliers, which makes suppliers of services to the healthcare industry effectively more expensive than they should be. I think this whole system is in dire need of an overhaul.

[gizmo]

You’ll find you’re not the first person who has discovered that you can cheat on your taxes by expensing personal purchases and by deducting things you are explicitly not allowed to deduct. The government’s inability to cheaply audit people like you means you won’t get in trouble. Your gut feeling that “it’s questionable” is right. Accountants lie about what deductions are allowed because they know the way to get happy customers is by producing tax savings, even where none exist. Just look up the tax laws for yourself and you’ll find that the “massive loophole” doesn’t exist.

[mcv]

But this isn't even cheating; this is stuff I am allowed to deduct. My accountant keeps bringing them up, and he's not the kind to cheat on this stuff. Other clients of his have been audited and received compliments for how well their stuff was in order. There are apparently very good reasons why this can be deducted. If the massive loophole doesn't exist, it's because it works as intended and is not a loophole at all, but to me it feels like a very grey area, because I don't think employees can't deduct all of this stuff.

And I'm certainly not going to look up tax laws; that's exactly what I'm paying my accountant for.

[gizmo]

Your accountant is 100% wrong. If you buy a computer and use it 20% for work and 80% for hobby stuff or gaming then you can deduct it for 20%. That's the law. This takes 30 seconds to google and your refusal to do so is mystifying because your accountant isn't liable for filing your taxes wrong, you are.

Your accountant keeps bringing deductions up because he wants you to feel he's worth his fees. That's why literally every accountant I've ever worked with has told me that "a good accountant pays for himself". Accountants compete with each other based on how much they can lower your tax bill. So yes, of course they'll help you make unlawful tax deductions, and they'll reassure you that it's perfectly fine and that they have many years of experience etc etc.

[MrPatan]

Yes, and I'll do you one better: everybody should have their own company and there should be no "employee" option. Everything should be contracts. Makes it clearer it's not a family relationship, it's business.