Skat af telefon når du er selvstændig - consumption and buying new phone

Hi all,

I hope that it is not a problem for anyone that I will write my question in english but unfortunatelly my written danish is still not that good.

I was reading the information about the regulations related to phone, computer and internet deductions and any extra taxes that they will be on. Originally I thought that the multimediaskat was still working but I saw that they change it for something else:

https://www.skat.dk/SKAT.aspx?oId=2112242

For the ones that know this rule a bit more in detail I have 3 questions related to the possibility of deducting the phone costs in my company.

1. Does the deducting of buying a new phone (the actual hardware) through the company and deduct the cost also will trigger the paying of the 2500 DKK that year or it is only if you deduct your phone consumption cost?

2. I understand that you only pay the monthly proportional part of that 2500 DKK for every month that you have deduct your consumtion cost? Is that right? And when do you pay that, at the end of the year once you have done your annual report?

3. I made a small aproximate calculation about how big should be one persons phone cost per month so it actually will be worth it to deduct its costs and using a flat 41% tax value I end up getting a consumption that should be bigger than 394 DKK per month (incl. MOMS). I was a bit shocked, so if someone can comment in which situations are they deducting their costs and verify if what I have calculated it is right it will be of great help.

Cheers,

Thanks for your reply John :)

Let me ask a few more things in relation to your answers:

Cookie - John Hannover:

1 yes - and it is 2600 for 2014 - as soon as the company pays any part - phone or calls or whatever, you pay the tax

2 you add the 2600 to your personal income for the whole year, but if you only have it e.g. 10 month then just 10/12 of the amount

If this is like that, and if it is not normally worth it for you to pay that 'phone tax' because you have a low phone cost, the best way, always, to buy a new phone through your phone service provider will be to pay it in just 1 month (and never spread the pay between 6 or more months) as you will only need to pay the 1/12 of 2600 once and then stop duducting your phone costs any month later, won't be?

Cookie - John Hannover:

3 as you add 2600 to your tax income and still pay the 2600 by your self in the company, the cost should be more than 2600 incl vat to make it pay just - you get exactly the same amount in deduction from the company as you add to your personal income (44%) so 2.600 - and remember that when it comes to VAT you may only deduct the VAT in proportion to the company use of the phone - lets say you use it 40% in the company, then only 40% of the vat can be deducted 

About the proportional use in whatever you buy between company and private, that system looks extremly bad designed. What does a company with employees have to do when they buy a computer to their employees? Can not they deduct the 100% of the VAT cost? So they have to do an estimation about how much the employee will use that computer to his private maters? And how do they prove that that estimation was at all the right one if an SKAT inspection comes up?

And the same questions will be valid if you are just selfemployed I guess. It will be a nightmare for me to evaluate properly my % of internet usage for private and work and then set up the right quantity per month. :(

Is that proportional deduction only for the VAT or also for the value of the item purchased?

Thanks again.

Freelance-EU-International:

If this is like that, and if it is not normally worth it for you to pay that 'phone tax' because you have a low phone cost, the best way, always, to buy a new phone through your phone service provider will be to pay it in just 1 month (and never spread the pay between 6 or more months) as you will only need to pay the 1/12 of 2600 once and then stop duducting your phone costs any month later, won't be?

No - you pay as long as you have the phone so the only way to stop paying is selling that phone - to your selv incl vat (or to someone else) and at market price = full price as you describe it

Freelance-EU-International:

Can not they deduct the 100% of the VAT cost? So they have to do an estimation about how much the employee will use that computer to his private maters? And how do they prove that that estimation was at all the right one if an SKAT inspection comes up?

Fair in many ways, as there would be many claiming never to use the car (or computer) privately. 

If you had only one private laptop and it was in your home, it would be assumed that it was used quite a lot privatly

It is not so unfair that you pay VAT of what you use privately and you do have to do your best to decide the %

Sometimes it is better not to speculate too much about how to get VAT back, and just worry about the business.

br John H

Freelance-EU-International:

You better double check it with your accountant or with SKAT.

the 2.600 is not incl. moms/VAT and therefor the VAT for the paying company shall be split still. The 2600 is tax on the private use - and has nothing to do with the company paying VAT on the amount - so split as also written her: http://www.tax.dk/jv/cc/C_C_2_1_4_4_1.htm

quote:

Bemærk

Der beregnes ikke moms af de 2.600 kr., som er en sats, og den selvstændige har kun delvis fradragsret for momsen af den faktiske udgift. Se ML § 38, stk. 2 og momsvejledningen afsnit J.2.1.1.

br John