Are internet costs deductible?

June 1, 2022

Are internet costs deductible?

Almost every entrepreneur uses the internet. Many entrepreneurs miss out on money by not including these costs in their administration. That is a shame. In this article, we explain how it works with the deductibility of internet costs.

You cannot just deduct all internet costs. If you rent a business space and use the internet there, you can fully deduct the internet costs. In other cases, you can make an estimate of which part of the internet subscription is business-related. For example, if you are a self-employed person who works from home and you have an internet subscription of €30 per month. You live alone and you think you use 80% of the internet for your business. Then you can deduct €30 * 0.8 = €24.

For some entrepreneurs, it may be necessary to purchase an extra fast internet subscription for work. Such a subscription is more expensive than a 'normal' internet subscription that you would purchase for private use. These extra costs for the stronger internet subscription are also business-related. You also need to make an estimate of which part you use for business purposes for this subscription.

For example, you had an internet subscription of €20 per month. You start a business and need a stronger internet subscription for it, which costs €30 per month. You cancel your old subscription. You can now deduct the additional costs you incur for strong internet and the business part of the internet costs. Suppose you think you will use about 50% of the internet subscription for business purposes. Then you can deduct €10 + 0.5 * €30 = €25.