Utilities for the premises
Utilities for premises used only for the business can be deducted in full for income tax, and the VAT can be deductible with a proper invoice. Home utilities are different: home percentage times 30% for income tax and 0% VAT. The app uses that home formula.
Premises used only for the activity
Electricity, water, gas or internet for premises that are not a home can enter at 100% for income tax if the premises are only for the business. VAT on that invoice can be deductible when the invoice is the one the rules require.
- Exclusive premises: 100% income tax.
- VAT, with a proper invoice.
- Not the home formula.
At home, percentage times 30%
You set the percentage of the home used only for the activity. On electricity, water, gas and internet the app applies that percentage times 30% for income tax, with 0% VAT. Do not enter home utilities under the premises rule. It is in expense tracking.
Common questions
Are utilities for the premises 100% deductible?
For income tax, if the premises are used only for the business. VAT can be deductible with a proper invoice. The home uses another formula.
What about electricity at home?
Home percentage times 30% for income tax and 0% VAT. The app uses that formula. It is not the 100% premises rule.
Official sources
Informational text reviewed on 26 September 2026. It is not tax advice and does not replace the Spanish Tax Agency or your accountant. Deadlines, rates, and forms can change.