Home office
An ordinary study in a home that is private property is usually not deductible. Income conditions also apply to an independent workspace. A private entrance, sanitary facilities and rentability to a third party help in assessing whether the space is independent. In the case of a home that is business assets, the outcome may be different. Therefore, check the home, use and income with the official explanation regarding home workspace.
Partially deductible expenses when working from home
For mixed expenses, you determine the business and private portions. The fact that you would have incurred an expense even without a business does not automatically rule out a business share. However, specific restrictions apply to housing, furnishings and telephony. Therefore, assess each type of cost separately.
Work space at home
A separate study is not automatically an independent workspace. For expense deduction, the use for your income and the tax treatment of your home also count. Use the workspace tool below.
Telephone and internet
For the internet, the demonstrable business portion may be deductible. For a private telephone subscription, the fixed subscription costs are not deductible; business call costs are. With a business subscription, you exclude private use. Read more about business telephone costs.
Energy, water and heating
The deduction of these housing costs depends on the assessment of your workspace and home. Do not simply use a percentage based on floor space. First calculate with the official tool whether you are eligible for deduction.
Furniture and equipment
A desk or chair for a non-deductible workspace does not become deductible just because you buy it for your work. Business equipment, such as a laptop, is assessed separately. A small asset under €450 can generally be processed directly as expenses; at €450 or more and multi-year use, you generally depreciate. Calculate without deductible VAT; non-deductible VAT is part of the acquisition costs. Check the calculation example for a business laptop.
Office supplies
Small business items are fully deductible. Keep receipts for your records. These expenses are directly part of your daily business.
Coffee and tea
Consumption for yourself is private. Only when you receive clients are the expenses limitedly deductible. As a self-employed person at home, this is usually rare.
Check whether you can deduct expenses
You can check your situation with the tool from the tax authorities. This tool shows whether you can deduct a workspace and what costs are involved. The outcome depends on your home and how you use the space so not all situations are fully accounted for. If your home deviates from the standard, extra verification is important. The tool does not work for every housing situation so sometimes you have to judge for yourself what is allowed.
Do you have a partner?
When you have a partner, the property must be tax-qualified. The tool only works when the property is entirely yours, entirely your partner's or jointly owned in community. In other situations, the outcome may differ.
VAT rules when working from home
Assess VAT separately from income tax. VAT deduction requires, among other things, use for taxed turnover and a suitable invoice. Private use, exempt turnover and the small businesses' scheme (KOR) can restrict or exclude the deduction. The income tax rules for a workspace do not automatically constitute a VAT deduction ban. Have housing costs for mixed use assessed specifically; read first when input tax is deductible.
Insurance when working from home
At home, you are not automatically insured for business risks. Private insurance often does not cover damage to business assets, putting you at risk yourself. Depending on your work, you may need additional insurance. Below are options that often suit self-employed people.
Common insurances
- Inventory and goods
Covers damage to business equipment or stock. - Corporate liability
Protects you when damage occurs to others. - Professional liability
Applies when a mistake in your work causes financial loss. - Cyber insurance
Useful when working digitally and at risk of data breaches.
Conclusion
Distinguish between property and interior, individual equipment and ongoing business expenses. Substantiate the business use and assess income tax and VAT separately. Use the official tool for the workspace. Would you like to have the processing taken care of? View what is included in our bookkeeping package.
