Since the outbreak of the coronavirus pandemic, many people worldwide, including in Germany, have increasingly worked from home. This means that private devices such as telephones or computers are also used for professional purposes. Certain costs can be claimed in the tax return, for example, expenses for internet and telephone.
How can telecommunication costs in Germany be deducted for tax purposes? Which amounts can be taken into account and who is entitled to this? The essential aspects are presented below.
Internet and telephone costs – tax. Who can benefit?
A tax refund for telephone and internet costs canbe claimed by individuals who regularly work from homeor use private devices for professional purposes. Therefore, anyone using a private smartphone or internet connection for work-related calls and tasks canclaim part of the costs for internet and telephone for tax purposes. If the employer does not reimburse these costs, there is the right to deduct them asincome-related expenses (Werbungskosten).
In addition,IT devices used for professional purposes can also be deducted for tax purposes, such as smartphone, laptop, or tablet (work equipment). If at least 10% of the device’s use is work-related, the expense may be included in the income-related expenses—generally 50% of the value; for usage exceeding 90%, even up to 100% (subject to appropriate documentation). More expensive devices (over €800 net) are taken into account through depreciation, usually over three years.Proof of usage is crucial—similarly to the internet, for example, on the basis of a multi-month overview.
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Tax treatment of telephone and internet costs in Germany – two options
How can internet and telephone costs be deducted? The German tax system currently provides two options for this.
- Flat-rate tax refund for telephone and internet costs – the flat rate allows 20% of the total costsup to a maximum of €20 per month, i.e., €240 per yearto be deducted.
- Tax deduction of telephone and internet costs based on receipts – if the flat rate is not chosen, the actual incurred and documented expenses can be claimed in the tax return. It must be stated what proportion was work-related, since only this part can be deducted as income-related expenses. The amount of deduction therefore depends on the actual work-related share and is not limited to a fixed amount.
For telephone and internet costs, a deduction method that reflects actual usage is recommended. In cases of low or hard-to-prove work-related use, the flat rate provides the simplest solution. If telephone, internet, or laptop are extensively used for professional purposes, recordkeeping of receipts and determination of actual costs is advisable—a well-prepared overview can lead to a more advantageous tax result.
Tax refund for telephone and internet costs in Germany – flat rate or receipts?
After both options have been presented, a comparison follows as to whether it is more advantageous to deduct telephone costs using the flat rate or by means of receipts. Both options are considered below.
Flat rate and German tax refund for internet and telephone costs
This method is characterized by the fact that no significant effort is required. When opting for the flat rate for telephone and internet costs,no proof is required as to the extent the private device was used for professional purposes.
This represents a material advantage—the telephone costs are deducted andadditional formalities are eliminated, provided there was professional use in the home office or for business calls on a private smartphone.
However,this method is not completely flexiblewith regard to the tax refund for telephone and internet costs—becauseonly up to 20% of monthly expendituresare recognized by the tax office asincome-related expenses. As mentioned above, the upper limit is €240—a higher amount cannot be claimed via this route.
How can the flat rate for telephone and internet costs be optimally deducted? It is recommended to select the three months with the highest bills. Alternatively,the annual averagemay be used.
Example:
- The highest billsoccurred in January, April, and October,
- the total of the three bills is: €50 + €47 + €52 = €149,
- €149 / 3 months * 20% = €9.93,
- €9.93 * 12 months = rounded up to €119.16.
In practice, this means thata tax refund for internet and telephone costs in the amount of €119.16 is possible, as this sum is below the applicable limit of €240.
Deducting telephone and internet costs based on receipts
Instead of the flat rate, a tax refund for telephone and internet costscan alternatively be claimed based on invoices and other documentation of actual expenses. Is this method worthwhile?
The greatest advantage lies in thepossibility of claiming unlimited high expenses for professional use of network and telephone for tax purposes. This is especially advantageous if telecommunication costs exceed the 20% share for work-related use.
On the other hand,deductible telephone costs must be documented, calculated precisely, and submitted. What does this look like in practice?
- Recording of all calls (private and professional) indicating date, time, duration, and participants, as well as submission for three selected months.
- Determination of the proportion of professional use of the network or telephone on the basis of an individual log or the recorded call duration.
If, for example, 40% of all calls were work-related, 40% of the total amount shown on the bill can be deducted.
Tax refunds for internet and telephone expenses for the self-employed – how does this work?
For self-employed activities, there is also a right to a tax refund for telephone and internet expenses incurred for professional purposes. The rules for deductibility essentially correspond to those for employees. These expenses can be claimed as operating expenses in the tax return – provided that private and business usage is separated. If such separation exists, calculation is straightforward; otherwise, an estimate must be substantiated by connection records covering a period of three months.
If the technology or network is used for business purposes at a rate of 90% or more, a full cost deduction is possible. Appropriate evidence must be provided – otherwise, the German tax authority may generally assume a 50% business use and at most allow a deduction for that amount.
In addition, IT equipment used for professional purposes can also be deducted, e.g., smartphone, laptop, or tablet (work tools). If the device is used at least 10% for business, the relevant proportion of costs can be taken into account as income-related expenses – typically 50% of the value is assumed, with up to 100% deductible for usage exceeding 90% (with suitable evidence). High-value devices (over €800 net) are accounted for by depreciation, generally over three years. Demonstrating professional use is decisive – similar to the internet, e.g., through multi-month records.
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FAQ
Can internet and telephone expenses be deducted for tax purposes in Germany?
Yes, if used professionally, it is possible to claim a portion of internet and telephone expenses as income-related expenses. Only the proportion of costs actually attributable to professional activity is deductible for tax purposes.
How much of telephone and internet costs can be deducted as a flat rate?
The simplest option is to deduct 20% of monthly expenses, up to a maximum of €20 per month. On an annual average, this results in a maximum amount of €240 that can be claimed in the German tax return.
Are detailed invoices required for the lump-sum deduction for internet and telephone?
When applying the lump sum, no detailed listing of individual calls or exact internet usage times is required. However, it is advisable to archive monthly invoices, as the tax authority may request documentation of the expenses incurred.
When is it advisable to calculate internet and telephone expenses based on invoices?
Calculation based on invoices is worthwhile if the business use of telephone or internet exceeds 20%. This proportion must be substantiated, for example by connection overviews, work logs, or the evaluation of several representative months.
Can a privately used telephone be claimed for professional purposes for tax purposes?
Yes, proportional deduction of a privately used telephone is possible, provided it is used for calls, messages, or other professional applications. The relevant proportion of the basic fee, call charges, and usage costs for the device can be taken into account.
Can the internet connection be deducted for home office use in Germany?
Yes, if the home internet connection is used for professional purposes, the business-related portion of the costs can be deducted on the German tax return. This applies in particular in cases of home office, hybrid work models, or for official duties outside the office.
Can IT devices such as laptops or smartphones also be deducted?
Yes, devices used professionally such as laptops, tablets, smartphones, or printers can be deducted as work equipment for tax purposes. For devices with mixed use, only the share attributable to business use is taken into account.
Does employer reimbursement of costs affect tax deductibility?
Yes, if internet or telephone expenses are reimbursed by the employer, these amounts may not be claimed again on the tax return. Only the expense actually borne personally is tax-deductible.
Where are internet and telephone expenses entered in the German tax return?
Internet and telephone expenses are entered as income-related expenses. For employees, they appear in the section “professionally related expenses” together with other employment-related costs.
Maciej Wawrzyniak
In his private life, Maciej enjoys sporting challenges, playing the guitar, and swimming in the lake. He is also the proud father of three sons.
