Can the expenses for the purchase of calling cards be a company expense?

Nowadays, a telephone is essential for the efficient running of a business. Therefore, entrepreneurs often wonder whether expenses for the purchase of telephone cards and the purchase of a telephone can be counted as tax deductible costs and whether VAT can be deducted from these expenses?

Expenses for the purchase of calling cards - when are they the cost?

If the purchased telephone is used in business activities, then the entrepreneur has the right to include all expenses related to its use (e.g. expenses for the purchase of telephone cards) as tax deductible costs.

As a rule, tax deductible costs are costs incurred by taxpayers in order to achieve income or to maintain or secure a source of income, with the exception of costs listed as not tax deductible costs (Article 22 (1) of the Personal Income Tax Act). As it has been mentioned before, nowadays the telephone is a necessary tool for running a business, the expenses connected with it are certainly a cost related to the entrepreneur's earning income.

What conditions must be met to include expenses for the purchase of telephone cards and a telephone as costs?

However, it should be noted that in order to be able to easily count the expenses for the purchase of a telephone and telephone cards used to top it up as tax deductible costs, it is necessary to associate the telephone with the company (so the number assigned to the card in this telephone should be registered with the company) . If this condition is not met - and thus the entrepreneur uses a private telephone for business calls - to be able to exercise the right to include these expenses as costs, it is necessary to have a billing confirming the calls made from a given number. This is due to the obligation to prove the relationship between the expenses incurred and the business activity conducted.

In addition, if the entrepreneur is registered as an active VAT taxpayer, he has the right to deduct VAT charged when purchasing a telephone and phonecards. Such deduction is made on general principles, i.e. to the extent to which the telephone is used for business activities.