Hacienda establishes general requirements for the self-employed to deduct the payment of VAT and personal income tax on their business expenses:
They must be linked to their business activity and those related to your personal life are excluded.
They must be properly justified with the corresponding invoice, receipt or proof of payment (the invoice must contain all the mandatory formal data such as VAT number, name and surname, date, description of the purchase, VAT breakdown and taxable base).
They must be recorded in the books by the freelancer, with Xolo's platform, it's super simple.
Here is a brief summary (for more information, see the detailed information expense by expense and how to deduct it according to the existing categories in Xolo's platform).
Marketing expenses (advertising, web, etc.)
Services of other professionals, as long as they invoice from outside Spain.
Software (Windows/Office or other licenses, cloud services, etc.)
Hardware (e.g. computer, printer, etc.)
Bank fees, in case it is an account exclusively linked to your business
Office supplies (including furniture)
Office rental. Although Xolo does not provide services to clients with withholding invoices for rentals, remember that you must declare the withholding of the invoices in the form 115.
Includes shared work space (e.g. coworking).
If you work from home:
If your home is reported in the model 036 in AEAT as the place where you develop your activity, you will be able to deduct a percentage of the invoices for supplies, as long as these are in your name.
You will be able to deduct also the interests of the mortgage and the IBI, in the same way that the supplies.
In case you are living in rented accommodation, please contact us to study your case and see if a percentage of the rent would be a deductible expense for your self-employed activity.
Participation in events related to your business
Books and training or courses related to your business
Business travel: accommodation and transport (the ticket must always be in your name)
Business trips: food and beverages (limit of €26,67/day and always justifiable with an invoice, not with a purchase receipt)
Social Security contributions (the bank receipt is enough)
Accountant fees (your Xolo receipt will be automatically uploaded on our platform)