# Can I claim Software Subscriptions as a business expense in Ireland?

**Yes, fully claimable.** Yes, software-as-a-service subscriptions used in the business (accounting software, design tools, CRM, hosting) are fully deductible against Corporation Tax.

Typical amount: €1,500 to €8,000 per year. A software company with several subscriptions can be well above that.

## 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.

Source: https://www.revenue.ie/en/companies-and-charities/corporation-tax-for-companies/computation-of-trading-profits/index.aspx

## Related expenses

- [Professional Fees (Accountants, Solicitors)](https://accounts-os.com/ie/expenses/professional-fees-ireland)
- [Home Office](https://accounts-os.com/ie/expenses/home-office-ireland)
- [Training & Professional Development](https://accounts-os.com/ie/expenses/training-ireland)