Electricity, gas, phone and internet bills are not 100% deductible, but you can deduct 30% of the percentage of the cost allocated to your activity specified in your self-employed registration form 036 (“modelo 036”) and they are only deductible in IRPF, not in VAT (IVA).
Let’s see an example:
I have an internet bill amounting to 20.00 + VAT = EUR 24.20
In my form 036, I have reported that 10% of my internet expenses correspond to my activity, so we can deduct the following:
20.00 x 10% = 2.00 * 30% = EUR 0.60 deductible base and EUR 0.13 non deductible VAT.
How to justify them?
They must always be in your name, as well as the rental contract or mortgage of the property from which you carry out your activity.
📞 Telephone bills
Telephone and internet bills that are part of the television package, are NOT deductible.
A mobile line that you use exclusively for your activity and it appears in a separate line of the invoice, it will be 100% deductible, as it does not count as a utility bill. This requires that every expense is broken down line by line in the invoice, so that it is possible to determine which parts are deductible as utility bills, not deductible, or 100% deductible - in the case of a professional phone line.
🏠 Rent (house/flat)
The deduction of rent expense is a controversial case, as sometimes you can deduct it and sometimes you can't.
At Xolo, we treat each case individually: the first thing we do is to review the contract to see if there is any clause in it that specifically indicates that we can or cannot carry out an economic activity in the dwelling.
In the case of being able to deduct it, this housing will have to be indicated in the model 036, in the same way as the rest of the utilities, and it will be deducted in the same way (30% of the percentage affected).