Deducting Internet expenses in a sole proprietorship: what is allowed and what is not

1. Internet expenses: business cost or not?

An expense is tax deductible if it is necessary for carrying out your professional activity. This rule also applies to your Internet subscription. Do you use the Internet exclusively for professional purposes, for example in an office or practice? You can deduct the full cost. In practice, usage is often mixed. Internet is used both for professional and private purposes. You must then apply a reasonable allocation.

Classic example:
You use your home Internet connection 60% for your professional activity (accounting, communication with clients, research) and 40% privately (streaming, social media). You can therefore record 60% of the cost as a professional expense.

The tax authorities accept a realistic estimate, provided it can be justified, for example based on usage time or volume. An excessive estimate may be rejected during an audit.

2. How to record Internet in your sole proprietorship (subject to VAT)?

In your accounts, Internet expenses are recorded under general expenses or telecommunications costs. In practice, the entry usually looks as follows:

• the invoice from your provider (for example Telenet, Proximus or Orange) is recorded as an expense
• you then apply the percentage of professional use
• VAT is only recovered on the professional portion

Concrete example:
• Telenet invoice: €72.60 VAT included per month
• Professional use: 70%

You can record €50.82 (70% of €72.60) as a professional expense.

3. VAT on Internet expenses: full or partial deduction?

VAT deduction follows the same logic: it depends on professional use.

Exclusively professional use → 100% of the VAT is deductible
Mixed use → proportional deduction

Concrete example:
• Telenet invoice: €60 excluding VAT per month
• VAT (21%): €12.60
• Professional use: 70%

You can then:
• record €42 (70% of €60) as a professional expense
• deduct €8.82 (70% of €12.60) in VAT

The VAT authorities accept a reasonable estimate.

Important point: VAT is only recoverable if the invoice is issued in the name of your sole proprietorship and includes your company or VAT number. If you use a private subscription without this mention, VAT recovery will be difficult to justify.

4. Private or professional subscription: is there a difference?

The difference remains limited if tax rules are respected.

You can use a private subscription for your activity. The deduction will then be applied proportionally to professional use. However, a professional subscription in the name of your business simplifies administration, especially if you want to recover VAT.

With a professional subscription, your VAT number appears on the invoice. This makes your accountant’s work easier and confirms the professional nature of the expense.

5. Is a professional Internet subscription mandatory?

No. You can use a private subscription, provided you can properly justify the professional use.

The tax authorities do not require two separate lines for private and professional use. They simply expect a credible allocation. Do you work full-time as a self-employed person from home? A higher percentage of professional use is then logical. Do you carry out your activity as a secondary activity, for example alongside a salaried job? The deductible percentage will generally be lower.

6. Internet and GSM subscription: same principles

The same rules apply to your GSM subscription:

• exclusively professional use → fully deductible
• mixed use → proportional deduction

For GSM subscriptions, the tax authorities often accept professional use between 50% and 75%, unless you can demonstrate a higher percentage.

VAT deduction follows the same percentage as professional use. Note: if you carry out your activity as a secondary activity, the authorities generally apply a lower professional percentage.

7. Tips for simplified tax management

A few best practices help keep your administration clear:

• prefer one monthly invoice per provider
• keep your invoices in digital format so you can present them in case of an audit
• document the justification of your professional use estimate (for example 60% professional / 40% private)
• if you are subject to VAT or self-employed as a main activity, preferably register the subscription in the name of your business
• ask your accountant to verify the correct VAT treatment

PIA Go! supports you

Accounting, VAT, business expenses… these topics may seem complex, but they do not have to be.

With PIA Go!, you can focus on your clients, your projects or your online store. We ensure that your administration remains flawless:

• simply upload your invoices, for example those from your Internet provider, via our application
• your dedicated PIA Go! accountant checks what is tax deductible and ensures correct VAT treatment
• you benefit from personalised advice, without complications or technical jargon

Try PIA Go! and discover how simple accounting can be. You work digitally, but never alone.