📍 Equipment

In that case, you deduct 100% of these expenses and recover 100% of the VAT. This applies to all multimedia equipment (smartphones, computers, keyboards, screens, mice, cables, adapters...) 📟. That said, it's not that simple! For example, you will need to prove that you have a second smartphone for private use and that you never use the professional phone for personal purposes.

In practice, a full-time self-employed person generally deducts these expenses at 75% (business use percentage). On this professional portion, VAT is 100% recoverable. If you are not working full-time, a pro-rata will need to be calculated on the expense.

For companies, it is different: the company deducts at 100% but a benefit in kind applies to the person using the asset (director or employee). For VAT, there is a recovery tolerance of 75% that is applied by default, unless 100% professional use can be proven (for example, you have 2 mobile phones).

Please note that depending on the purchase amount and the intended useful life of the smartphone, tablet or computer, the expense will either be fully accounted for in the year of purchase or treated as a fixed asset and depreciated. Depreciation then follows the same deductibility rules as those presented above.

💡 Please note that if you opt for the 75% flat rate for VAT recovery, this implies that there is private use and therefore a benefit in kind for a company, or a private use percentage to apply as a sole proprietorship. With the BILLY app, essential for your accounting, you can justify a higher business use percentage.