There are already available, on the AT (Tax and Customs Authority) e-invoice portal, options for the total or partial allocation of invoices related to professional or business activity, for individual taxpayers who registered for opening an activity.
The question about the nature of the expense was put on the positive side, making it easier to see that “NO” refers to personal invoices, and “YES” refers to professional invoices. The option “partial expense” was also added.
The “partial expenses” are those that, although not being 100% for our professional activity, are partly allocated to our Local Accommodation. Here are some examples:
- communications (telephone, internet)
- electricity and water (from our house, if we wash our LA's clothes at home, for example)
These expenses must be marked with the option “Yes, partial” and AT will make the assignment automatically, allocating 25% of the invoice to the expenses of our activity and 75% to the expenses of the personal forum.
However, we leave some caveats:
- By taking advantage of this benefit, namely discounting direct expenses from our home (such as electricity, water for example), we are indicating to AT that we use our home to perform a professional activity and, as such, in the same percentage (25%), will be applied the rules for applying capital gains.
- If we exceed € 27,360 of annual invoicing, to continue to benefit from the coefficient 35% taxable income / 65% expense, we have to justify 15% as an expense (ranking on the e-invoice portal) of the amount that exceeds € 27,360 in billing.
Thus, we advise caution when choosing the classification of “partial expenses”.
Whoever sells accommodation through OTA's like AirBnB, for example, has 15% of justified expenses. The invoices of the Booking commission, can be posted on the portal, using the registration of invoices from abroad and, in the case of AL, we will classify them as real estate, and as 100% professional expense.
Hopefully, you have been informed about the registration of invoices on the e-invoice portal. If you want to know more legal requirements for your LA, read in our article on the topic.
