Horse expenses tax-deductible as a freelancer? Here's what you need to know

When is a horse considered a business asset?

The Tax Authority only accepts horse-related costs as a business expense if there is a direct, demonstrable connection to your company. Think of an instructor who gives lessons on their own horses, a photographer whose exclusive subject is horses, or a vet who treats horses and uses a demonstration horse. The horse must genuinely be used to generate revenue. If you also use your horse privately, full deduction is virtually impossible. The Tax Authority applies the 'business purpose test': no horse, no business.

Which costs are potentially deductible?

If your horse passes the business purpose test, the following costs may qualify for deduction:

• Stabling costs (stable, pasture)
• Feed, farrier and vet costs
• Riding lessons and training that directly contribute to your profession
• Entry fees for business-relevant competitions or demonstrations
• Depreciation on the purchase value of the horse (usage period determines the percentage)

Mixed use: private and business

In practice, most freelancers also ride recreationally. With mixed use, you may only deduct the business portion. For example: if you use your horse 40% for business purposes (riding lessons) and 60% privately, then 40% of the costs are deductible. Keep a riding log with the date, purpose and duration of each use — this is your evidence during a tax audit. EquiSight's horse dossier is useful for this: you can log training sessions and activities by date, which you can later export directly for your accountant.

The hobby threshold: profit expectation matters

A common mistake is claiming deductions while the Tax Authority classifies the activity as a hobby. This risk arises when you structurally make a loss on the horse-related activity. The tax inspector will assess whether you have a realistic profit expectation. If you make a loss year after year with your 'horse business', the inspector can refuse the deductions and issue corrected assessments, sometimes with interest. Discuss this in advance with a tax adviser who has experience with agricultural or sport-related freelance structures.

Reclaiming VAT on horse-related costs

If you are a VAT-registered business owner, you can reclaim the VAT on business horse-related costs through your VAT return. The VAT rate on horses and horse feed is 9%. Please note: instruction services are subject to 21% VAT. For mixed use, apply the same allocation key as for income tax. Keep all invoices in your company's name — a receipt in your own private name is not sufficient for VAT deduction.

Practical steps for your administration

• When purchasing your horse, create a business dossier with the purchase agreement and asset registration
• Keep a monthly overview of business versus private use (hours or rides)
• Always request invoices in your company's name, including your Chamber of Commerce number
• Use EquiSight to log training sessions, competitions and veterinary costs by date
• Discuss your situation annually with a tax adviser before filing your return

Calculation example: what does it actually save you?

Suppose you have €8,000 per year in horse-related costs (stabling, feed, farrier, vet). You use the horse 50% for business as a riding instructor. That means €4,000 is deductible. For income tax purposes, at a rate of 36.97% in the first bracket, that saves you over €1,478 in tax. Over several years, that adds up quickly. But be aware: if you cannot convince the Tax Authority of the business use, you risk a back-payment covering all years at once.