Can I Claim Software Subscriptions as a Business Expense in Ireland?
Yes, software-as-a-service subscriptions used in the business (accounting software, design tools, CRM, hosting) are fully deductible against Corporation Tax.
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What Revenue (Revenue Commissioners) says
Revenue treats SaaS subscriptions as revenue expenditure deductible in the period incurred. Perpetual software licences over €1,000 may be capitalised and written off via capital allowances (12.5% over 8 years). Where a business buys a licence outright for a long period, the cost is treated as capital rather than revenue. A short subscription that is renewed regularly stays as a revenue expense. The business should apply the policy consistently each year.
When you can claim
- Monthly/annual SaaS subscriptions (Slack, Notion, Adobe, Xero)
- Domain names and web hosting
- Cloud storage (Google Workspace, Dropbox)
- Stock photography and design assets used in the business
- Subscription management, password manager and cyber security tools
- Accounting, payroll and e-signature tools used to run the company
When you cannot claim
- Personal subscriptions (Netflix, personal Spotify) without clear business use
- Software bought outright over €1,000: capitalise instead
- Mixed-use subscriptions without apportionment
- Software for a director's private use, such as a family streaming plan paid by the company
- Reverse charge VAT on software used for exempt activities, which is not recoverable
- Pirated or personal gaming software, and the cost of subscriptions in a name that is not the company or an employee
Good to know
Pro tip: Run a quarterly review of recurring card payments. Cancel anything unused and keep the invoice, because Revenue wants a record that shows the business purpose of each subscription. Keep a single schedule of subscriptions with the supplier, the monthly cost, the business purpose and the user. A director who pays personally for a tool should be reimbursed against an invoice in the company name where possible.
Important: Foreign SaaS suppliers often charge no Irish VAT. The VAT-registered business should self-account for VAT on the reverse charge on its VAT3, and can usually reclaim it in the same return if the software is used for taxable supplies.
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