The deductible expenses in the personal income tax and VAT for the self-employed who telework for the covid-19

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The deductible expenses in the personal income tax and VAT for the self-employed who telework for the covid-19





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Apartment in Argentona (Barcelona)


On the occasion of the pandemic caused by the covid-19, many freelancers and entrepreneurs are teleworking. Although it is a group that must face a battery of expenses, the positive part is that some can be deducted in personal income tax and VAT, such as, for example, those derived from doing their work from their usual home.

So that the taxpayer can deduct the expenses generated by the home, either in property or for rent, in which he telework you must notify the Treasury first, Because if the economic activity is not affected, the treasury will not allow any deduction of expenses. Specific, José María Salcedo, partner of the firm Legal Attic, points out that you must indicate the m2 of the house that you will allocate to your activity, by means of a census declaration, model 036 or 037.

In the absence of regulations regarding the deduction of expenses generated by telework on the occasion of the covid-19, the lawyer recalls that it is necessary to resort to the general rule on the deduction of expenses in VAT and personal income tax when working from home.

The expenses to be deducted if the home is owned

In personal income tax, the self-employed person can deduct the depreciation of the home and the expenses inherent to the property, such as IBI, garbage fee or community fees, IBI or garbage fee.

To know how to deduct deductible housing supply expenses (water, electricity, heating…) You must go to article 30.2.5ª.b) of the Personal Income Tax Law, which, with effect from 1-1-2018, provides that “the expenses of supplies for said home, such as water, gas, electricity, will be deductible , telephony and internet, in the percentage of applying 30% to the existing proportion between the m2 of the dwelling destined to the activity with respect to its total area, unless a higher or lower percentage is proven ”.

Regarding VAT, the Treasury establishes that the taxpayer can deduct the amount supported on the purchase of investment goods with a value greater than 3,0005.06 euros. However, the supplies of the property (electricity, water, telephone) will not be deductible because at this point the Treasury requires an exclusive allocation to the activity. “However, said requirement contravenes Article 168 of the Community Directive, which allows VAT to be deducted from these expenses and services, to the extent that they are used for the activity,” says Salcedo.

The expenses to be deducted if the house is in community property

The General Directorate of Taxes The home where the activity is carried out is declared to be affected by the taxpayer’s economic activity, regardless of whether it is 50% owned by both spouses.

Thus, the autonomous spouse will be able to deduct the expenses and supplies of the house, computing the totality of the m2 that he / she dedicates to the activity, even if he / she owns 50% of those m2.

Deductible expenses if the home you telecommute is for rent

The tenant is not obliged to pay expenses such as the IBI, the community of owners or the garbage fee, unless it is included in the contract lease. In that case, the expenses can be deducted. The deduction can only be made proportionally with respect to the m2 of the property destined for economic activity.

José María Salcedo recalls that “it is necessary that in the rental agreement it is stated separately which part of the rent paid corresponds to the use as a dwelling, and which to the use as an office, since the rental of housing is exempt from VAT, but the office one does not. This fact can pose problems with the owner, who refuses to collect two different rents (one with VAT and one without it). His refusal to state in the contract that the property is intended for housing, and partially also for carrying out an economic activity, will make it difficult to deduct the costs of teleworking, according to Salcedo.

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