c. Supplies

Regulations: Art. 30.2.5b) Law Income Tax

This concept must include the amount of expenses corresponding to electricity and any other supplies (water, gas, telephone, internet, etc.) that cannot be stored.

Note: Expenses arising from the use of a mobile telephone line will be deductible to the extent that this line is used exclusively for the development of the economic activity. These expenses include the purchase of the mobile phone itself, although this deduction must be made through amortization, applying the corresponding amortization coefficient to its purchase value.

Without prejudice to the above, the following special rule of IRPF , which is discussed below, must be taken into account for the purposes of determining the deductible amounts for this concept.

Personal income tax on utility costs for the taxpayer's habitual residence that is partially affected by the development of economic activity

Regulations: Art. 30.2.5.b) Law Income Tax

From 1 January 2018, when the taxpayer partially uses his or her habitual residence for the development of his or her economic activity, the costs of supplies for said residence, such as water, gas, electricity, telephone and Internet, will be deductible in the percentage resulting from applying 30% to the proportion between the square metres of the residence used for the activity and its total surface area, unless a higher or lower percentage is proven.

Observation: Prior to the amendment made by Article 11 of Law 6/2017, of 24 October, on Urgent Reforms of Self-Employment (BOE of 25 October), only expenses arising from the ownership of the home, such as amortisation, IBI, community of owners, etc., were considered fully deductible in these cases, in proportion to the part of the home used for the development of the activity and its percentage of ownership in the property, unless the taxpayer was a tenant of the home, in which case he could deduct the expense corresponding to the income paid for the rental of the home in proportion to the part exclusively used for the economic activity in relation to the entirety of the home. On the contrary, it was required that the expenses derived from supplies (water, electricity, heating, telephone, Internet connection, etc.) be used exclusively for the exercise of the activity, and the same apportionment rule that was applied to expenses derived from the ownership or rental of the home could not be used in relation to these.

Covid-19:In the event that, due to the situation arising from Covid-19, a professional works in his/her home without it being partially affected by the activity and, as a consequence of said professional use, the usual expense of some supplies (electricity, internet, etc.) of the same increases, keep in mind that these expenses for supplies cannot be deducted since the home is not partially affected by the activity and its use is motivated by an occasional and exceptional circumstance.