Deductibility of streaming subscriptions for self-employed individuals in Personal Income Tax

The Dirección General de Tributos (DGT) has issued a relevant ruling for self-employed professionals operating under the direct estimation method who wish to include subscriptions to audiovisual content platforms as deductible expenses in their Personal Income Tax (IRPF) declaration.

What the DGT has ruled

The query concerned the possibility of deducting these expenses and the proportion in which they could be applied. The DGT establishes that, for viewing platform subscriptions to be deductible, they must strictly comply with the principle of correlation with the income from the activity.

The body clarifies that the link between the expense incurred and the generation of income is a matter of fact. This implies that the relationship between the contracted service and the professional activity must be demonstrable before management and inspection bodies. Likewise, it is required that the expense be duly justified by an original or simplified invoice and that it be correctly recorded in the mandatory accounting books.

What this means for you

If you are self-employed and use streaming platforms as part of your professional activity, there is no automatic deduction or deduction based on a fixed percentage. Deductibility does not depend on the nature of the service, but on the ability to prove that said expense is necessary to generate income in your specific sector.

The burden of proof lies with the taxpayer. This means that, in the event of an inspection, you must demonstrate that the subscription has a strictly professional purpose and is not for personal or leisure use.

What you should do

To ensure the correct application of this criterion, it is essential to follow these requirements:

• Documentary justification: Ensure you have invoices that comply with legal requirements, avoiding simple bank statements.
• Accounting record: The expense must appear clearly in your expense registration books.
• Accreditation of activity: Maintain documentation that allows you to demonstrate the direct relationship between the content viewed and the economic activity that generates your income.

Each professional situation is different, so it is necessary to assess the nature of your activity before including these items in your accounting.