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V2554-23 25 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · deducción del impuesto

Proportional deduction allowed for home internet and utilities, but not for dual-use mobile phones

A lawyer requested clarification regarding the deductibility of VAT and Income Tax (IRPF) for internet and mobile phone expenses in a home office. The Directorate General for Taxes (DGT) ruled that home internet and utilities are deductible on a proportional basis, whereas mobile phones used for both professional and personal purposes are not.

The question raised

Deductibility for VAT and Personal Income Tax (IRPF) of the fees and expenses incurred for household internet supply and the expenses related to said mobile phone.

The DGT's ruling

Regarding VAT, household utilities (water, electricity, gas, internet) are deductible in proportion to their professional use in accordance with the VAT Directive. Mobile phones are not deductible as they do not constitute a utility of a real estate property. Regarding Personal Income Tax (IRPF), household utilities are deducted by applying 30% to the proportion of square meters allocated to the activity. A mobile phone used for mixed purposes is not deductible as it fails to comply with the principle of correlation with income.

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