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Deduct the cost of your phone subscription

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Deducted by90% of independentsRecommended by0% of independentsDo you deduct this expense?Would you recommend this expense?

Your phone bill is generally deductible

Indeed, as an independent, you need a phone subscription to call and receive calls from clients, prospects, and suppliers: the link to your professional activity is in nearly every situation obvious. You should deduct the costs of your GSM subscription if you don’t already!

Both prepaid purchases and monthly subscriptions are deductible in the same way.

The percentage of deductibility depends on how much you use your phone for work.

Attention, having said this, there are a couple of elements to consider when it comes to deduction, as phone expenses are generally considered as “mixed” expenses (both personal & professional):

  • Tax Authorities know that you use your phone for both your private and professional life, which is why they will impose a maximum tolerance of 75% deductibility to recover VAT.
  • For the income tax, the deductibility depends on the volume of business use in relation to your private use. If you work 5 days a week, you can easily deduct 5/7 of your expenses. Do you work two days a week? It will then be more like 2/7. It’s actually the same logic as for your Internet bills.

In Accountable, simply scan, upload, or email us (at your phone bill and we will make sure you always deduct the right percentage. It is as simple as that.

What about deducting the cost of buying a new phone?

Your handset will also be deductible, generally under the same rules for income tax (VAT recovery is, in this case, not limited to 75%). If the purchase is above 250€, we will generally recommend amortizing it over 3 years to avoid any discussion with Tax Authorities. In Accountable, it’s done automatically for you, so you can focus on your business, not your taxes.

Pro tip: If you are a software developer that needs to develop and test your software on different operating systems, notice that you can justify buying as many devices as you need. Woop woop 🥳.

Koen MasscheleinKoen MasscheleinAccountant and Managing Director of Makofisc

Expert’s advice

These expenses are deductible only to the extent of professional use. The private portion is never deductible. In practice, this ratio is often estimated. Make sure you can always substantiate that estimate as well. For example, you can use the invoices to determine the ratio between business calls and private calls during a certain reference period and use the obtained percentage as a starting point to deduct the costs. If you notice that the ratio does change significantly over time, take a new sample so that you can always justify the percentage applied during an audit. The VAT on these costs is only deductible to the extent that they are used for professional purposes. In case of predominantly professional use, you can opt for the flat rate of 75%.

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