As a self-employed person, do you work (partly) from home? Then you may sometimes deduct the costs for your workplace. In this article, you will find out what these costs are, what the VAT is and what exactly you need to do to arrange this.
Deductible expenses when working from home
Work space at home
Your workspace at home is only tax deductible if it is an independent place. That means: a separate room with its own door and toilet, which you use almost exclusively for work. So is your workspace like this? Then you may deduct part of the rent, mortgage, energy and stuff. Is it not an independent workspace? Then you may not deduct the living expenses.
Internet, energy, water and heating
You can deduct part of your internet costs if you use it for business. You decide how much, for example by considering how much time you work. Costs for energy, water and heating are only deductible if you have an independent workspace. Do you use special appliances for your work? Then you may sometimes deduct the extra consumption of these.
Furniture and equipment
Are you buying a laptop, phone, printer or software for work? Then you may deduct those costs, even without a self-contained workspace. Furniture such as a desk or office chair can only be deducted if you have an independent workspace. Devices can also be depreciated as business assets.
Office supplies
Paper, ink, notepads and pens are typically business expenses. You can deduct these in full if you use them for work. Costs for coffee or toilet paper are private and you may not deduct them.
VAT aspects
Do you work from home as a self-employed person? Then you will have to deal with VAT on your business expenses. You can often reclaim the VAT, but only if you really only use the items for your work. Here are the main rules:
- Internet and telephone: you can reclaim VAT on the business part of your subscription. For example, do you use 60% for work? Then you can also deduct 60% from VAT. Just make sure you can prove this properly.
- Appliances and office equipment: For laptops, office chairs, printers and office supplies, you can usually reclaim the entire VAT if you use them for business. Do you use them partly privately? Then you may only reclaim the business part.
- Workspace and energy: VAT on energy or furnishings for your workspace can only be reclaimed if you use that space for business. Do you have a self-employed workplace? Then you may also deduct part of the energy costs. Without a self-employed workplace, you may not reclaim VAT on housing costs.
Note: invoices must be in your company's name. Do you use the KOR (small entrepreneurs scheme)? Then you may not reclaim VAT. Not sure? Then ask your accountant.
Tax authority requirements and conditions
The tax authorities have strict rules on deducting home office expenses. If you don't abide by them, you could face problems during an audit. Pay attention to these important conditions:
- Costs should really be business-related.
- For mixed expenses, you may only deduct the business portion.
- A self-contained workspace has its own entrance and you only use it for work.
- Invoices must be in your company's name (for VAT).
Common mistakes and misconceptions
In practice, some things still go wrong when deducting home office expenses. Here are a few common mistakes you had better not make:
- Thinking your home office is always deductible.
- Report private expenses such as coffee or lunch as business.
- No distinction between private and business use.
- Missing or misusing invoices for VAT refund.
Conclusion
Working from home as a self-employed person does cost money. Fortunately, you can deduct much of it. Appliances, internet and office equipment can almost always be (partially) deducted. For housing costs, this only applies to independent workspace. Want to make sure you get everything right? Then talk to your accountant and make the most of your home office expenses.
