Spanish Tax Authorities will NOT Accept Claims for Electricity and Internet Charges From Teleworkers

Spanish Tax Authorities, Hacienda, will NOT Accept Claims for Electricity and Internet Charges From Teleworkers.

Freelancers who work at home due to the pandemic will not be able to deduct expenses such as electricity or Internet charges. After the General Directorate of Taxes recently responded negatively to the request of a worker regarding these claims- the ATA ( Association of Autonomous Workers) the association took on the case and is now demanding “urgent rectification” on behalf of its thousands of members.

If due to the pandemic, and the consequent mobility restrictions it imposes, a self-employed worker is forced to work from home, then electricity or internet expenses that they accumulate due to this situation will not be able to be deducted from his or hers tax bill. Faced with this announcement, the ATA has demanded, a statement and an “urgent rectification” after qualifying the resolution as “incomprehensible” and “discriminatory”.

The test case started when the Agencia Tributaria (the Tax Agency) received a query from a worker who had requested the deduction of expenses of supplies (Internet and electricity, among other things) from her private home while having to carry out a job she generally carried out in her place of work- which she can no longer travel to.

The answer she received was direct and straight forward: she cannot claim for these things. The resolution, published on November 11, 2020, explains that the deduction for housing supplies can only be applied “when the taxpayer has a part of the home dedicated to the activity”. The deductible fee is determined by the percentage of square meters set aside for professional use. A personal tax adviser would be able to acquire the amount available to claim back on.

The appeal is still ongoing and a decision is expected with the next few months although it is unlikely to come out in favour of the worker. However, after reading this and with the number of people working from home now in Spain very high, it looks like the Hacienda may have a few claims on their desks very soon. TW

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