How is private use of telephone and internet taken into account?

How is private use of telephone and internet taken into account?

If you use telephone, mobile or internet for both business and private purposes, only the business-related costs may reduce your profit.

If you have initially recorded the total costs as business expenses, you must account for the private portion as withdrawal for private use.

Private use withdrawal = total costs × private usage percentage

The private usage percentage can be determined using appropriate documents or, if an exact breakdown is not possible, estimated on a reasonable basis. The estimate should be comprehensible.

Alternatively, you can initially only claim the business portion of the telephone and internet costs as a business expense. An additional withdrawal for private use is then not required.

What applies to VAT?

For telephone and internet costs that are both business and privately incurred, VAT can generally only be deducted to the extent of the business portion.

If a business smartphone or other telecommunications device has been assigned to the company and the purchase entitled to VAT deduction, private use may also be subject to VAT.

Does the tax exemption for employees also apply to the self-employed?

No. Employees can use their employer's business telecommunications devices privately tax-free under the conditions of § 3 No. 45 EStG. This tax exemption does not apply to entrepreneurs or self-employed persons who use their own business devices privately.