Home work: NEW deductions freelancers in Spain , costs from VAT, Renta 2023.

Income tax report 2023, report in Spain, Spanish tax agency, pay taxes in Spain as a resident or as a non resident.
Income tax report 2023, report in Spain, Spanish tax agency, pay taxes in Spain as a resident or as a non resident.

13.5% of people aged 35-54 telework, and those over 55 are not far behind with 12.1%.
However, the self-employed could not deduct their housing costs from VAT. Until now.

The Central Economic Administrative Court (TAEC) allows self-employed teleworkers to deduct VAT on housing supplies.

Until now, self-employed workers could deduct electricity, internet, gas, etc. bills, but they could only apply 30% in respect of the square metres of the dwelling used for the professional activity.
However, it was not possible to deduct VAT on these bills, until the TAEC decided to change this.
The reason for the change was that the Central Economic Administrative Court (TEAC) considered that the VAT law was not congruent with the European VAT Directive.
Article 168 of the Directive makes it clear that business expenses can be deducted on a proportional basis, i.e. it must be clear what percentage of the property is used for business purposes.
Even so, the Tax Agency has not yet clarified the conditions for measuring expenses.
Therefore, we will have to wait for a decision before we can resolve any doubts about how to calculate the percentage to deduct housing expenses from VAT.
Although the self-employed work at home, they are also carrying out their professional activity, so they have the right to deduct what they spend.
Conditions for the self-employed to deduct the VAT on their home
One of the conditions for self-employed persons to be able to deduct VAT on the costs of their home is that they carry out their professional activity there, i.e. that they telework.
However, only certain services can be deducted, such as water, electricity, gas, landline telephone and Internet.
However, it will be necessary to indicate which part of the home is used for work, as the expenses for these services will not only be professional, but also personal.

Thank you  for reading this post, if you think we have been able to help you or if you still have any questions, you can always contact me via WhattsApp (+49 1520 8381499) or e-mail (erica@taxandlawspain.com).

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