Can I Claim Utilities, Phone and Internet as a Business Expense in France?
Partly. Electricity, internet and phone bills for business premises are deductible. For a home office only the business share can be claimed, and the VAT only where the invoice is in the company's name.
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What Direction générale des Finances publiques (DGFiP) says
Running costs of the business premises, such as electricity, gas, water, heating, internet and the phone lines the company uses, are deductible charges when they relate to the activity. The company deducts the VAT on the invoice if it is registered for VAT and the invoice is in its name, which is the condition set out in the BOFiP. Mixed use is the common problem. A mobile phone used for work and for family is a mixed cost: only the business share is a company expense, and without a reasonable split the whole item can be challenged. A director who works from a spare room can sometimes charge the company a fair rent or an allowance, but this has to be documented and agreed with the expert-comptable, because an arrangement that works like a hidden benefit can create a benefit in kind. Energy and telecom bills are also a place to look at the VAT rate. The standard rate is 20%, and the invoice shows the rate that applies. Always use the rate on the invoice, not a guess. For a company in the franchise en base the invoice price is the cost, because it deducts no VAT.
When you can claim
- Electricity, gas and water for an office, shop or workshop
- Business internet and fibre lines
- Mobile and landline plans used for the company
- Heating and cleaning of business premises
- A separate business line at home, billed to the company
- Waste collection and security alarm contracts for the premises
When you cannot claim
- Household energy and internet bills for a family home
- The private share of a phone plan used by the family
- Bills in a personal name that have no link to the activity
Good to know
Pro tip: Ask for a business contract in the company's name instead of using a personal one. It makes the VAT deduction clean and removes the argument about private use.
Important: If your accountant agrees a fixed allowance for home working, write the agreement down and keep it with the books.
Related expenses
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