Can I Claim Software and Technology Subscriptions as a Business Expense in Guernsey?
Yes, software subscriptions (SaaS tools, cloud services, accounting software, business applications) are fully deductible as revenue expenditure. There is no VAT in Guernsey so the full subscription cost is the deductible amount with no input tax to recover.
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What Revenue Service, States of Guernsey says
Recurring software subscriptions are revenue expenditure and deductible in the accounting period they relate to. Software licences may be capital expenditure if they confer a perpetual right. The Revenue Service says capital items such as computer equipment are not a direct deduction. Instead an annual wear and tear allowance can be claimed, with rates on the Revenue Service allowances sheet. Costs must be wholly and exclusively for the purposes of the business.
When you can claim
- Monthly or annual SaaS subscriptions (CRM, project management, accounting, HR)
- Cloud computing and hosting costs (AWS, Google Cloud, Azure)
- Website hosting and domain registration fees
- Cybersecurity tools and services
- Video conferencing and communication tools
- Professional data services and market data subscriptions
When you cannot claim
- Perpetual software licences treated as capital expenditure (claim via capital allowances instead)
- Software for personal use not related to the business
- Computer hardware, which is a capital item covered by the annual wear and tear allowance
- Subscriptions that are not wholly and exclusively for the business and are not apportioned
Good to know
Pro tip: For SaaS subscriptions, the deduction is simple: the amount paid is deductible in the period it relates to. For larger one-off purchases, check the allowances sheet and the capital allowance rates with a local accountant.
Important: Guernsey does not charge VAT, GST or any equivalent consumption tax, so the full subscription cost is the deductible amount. A cloud service billed in a foreign currency is deducted at the sterling value you actually paid, so keep the card statement.
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