Business Insider BlogsBusiness Insider Blogs
Aa
  • Business
  • CV
  • E-Commerce
  • Finance
  • Marketing
  • Markets Insider
  • Real Estate
  • Sports
Reading: are marketing expenses tax deductible
Share
Aa
Business Insider BlogsBusiness Insider Blogs
  • Business
  • CV
  • E-Commerce
  • Finance
  • Marketing
  • Markets Insider
  • Real Estate
  • Sports
Search
  • Business
  • CV
  • E-Commerce
  • Finance
  • Marketing
  • Markets Insider
  • Real Estate
  • Sports
Follow US
Business Insider Blogs > Blog > Marketing > are marketing expenses tax deductible
are marketing expenses tax deductible
Marketing

are marketing expenses tax deductible

businessinsiderblogs
Last updated: 2022/12/20 at 9:03 AM
businessinsiderblogs Published December 20, 2022
Share
SHARE

are marketing expenses tax deductible – As a freelancer or small business, from time to time you may dedicate a portion of your budget to advertising or improving your own brand:

Contents
Are advertising expenses deductible?Legal requirements to deduct advertising expensesAttention to customers or suppliersAnd what about VAT?ConclutionDeductible expenses for marketing freelancersThe deductible expenses of the self-employedJust in case, here’s an example:VAT deductible expenses
  • A new logo.
  • A new website.
  • Advertising in a digital magazine, a website or a blog.
  • Social media ads.

And as business expenses, it is possible to deduct these expenses.

Table of Contents

  • Are advertising expenses deductible?
  • Legal requirements to deduct advertising expenses
  • Attention to customers or suppliers
  • And what about VAT?
  • Conclution
  • Deductible expenses for marketing freelancers
  • The deductible expenses of the self-employed
  • Just in case, here’s an example:
  • VAT deductible expenses

Are advertising expenses deductible?

The answer is yes, the advertising expenses linked to your economic activity are tax deductible to the extent that these expenses are necessary to obtain income.

They are deductible in:

  • The income tax.
  • The corporate tax.

As long as they meet the legally established requirements. Let’s see what these requirements are.

Legal requirements to deduct advertising expenses

The legal requirements to be able to deduct your advertising expenses in general are the following:

  • They must be expenses linked to theeconomic activity carried out by the self-employed person, or as the Treasury says, that are “affected to it”.
  • They must be duly justifiedby means of the corresponding invoices. Sometimes they can be worth receipts.
  • They must be registered for accounting purposes: by the self-employed in their corresponding expense and investment record books (if applicable) and by companies and associations in their annual accounts.

If your expenses meet these requirements, they can be included in your declarations/settlements as deductibles.

Attention to customers or suppliers

This is a type of advertising spending that deserves a separate mention due to its particularity. Attention to customers or suppliers are advertising expenses that are made to promote the sale of your products or services.

For example : calendars, t-shirts, diaries, pens, key chains, magnets, caps and other gifts in which the name or logo of the company appears.

if you are autonomous

For personal income tax, the legislation establishes that all expenses related to public relations with customers and suppliers and that, in addition, are repeated over time, are deductible in the income statement.

If you are a company

If instead of being self-employed, you have a company, the corporate tax works the same as for personal income tax (in fact, this tax is levied the same, only one is for individuals and the other for companies) and these expenses are also deductible in the Corporate Tax.

In this case there is an additional requirement, the expenses are deductible up to a limit of 1% of the net amount of your company’s turnover in the same tax period.

And what about VAT?

On the other hand, the Value Added Tax Law indicates as non-deductible the VAT borne on the acquisition of goods or services intended for attention to clients, employees or third parties, with the exceptions of:

  • Free samples and low value promotional items.
  • Assets destined for the commercial traffic of the company and that, later, are destined to attention to clients, employees or third parties

Therefore, only advertising gifts delivered to customers and suppliers that visibly and indelibly bear the name of the company and are considered of little value will be deductible.

And as a curiosity, a good is of low value when the value of what is delivered to the same recipient in a calendar year does not exceed €200.

Conclution

Do not miss the opportunity to deduct your advertising expenses . They are a necessary expense to get more customers, more sales and more income and therefore are deductible.

I hope you originate this article interesting and above all that you find it very useful.

Go up to the cloud and discover everything that FacturaDirecta can do for your small business. Create a free account .

Deductible expenses for marketing freelancers

Deducting expenses is a constant topic of conversation among all kinds of freelancers (and rightly so). After all, they are one more way to save money each year. But it is that if you are self-employed, depending on the type of work you do, you will be able to opt for more or less deductions when making the income statement or the quarterly forms, even if you dedicate yourself to communication! But what expenses derived from marketing for freelancers are

The deductible expenses of the self-employed

First of all, let’s review a little general deductible expenses (which also affect freelance marketers). Every year, when you file your income tax return, the Treasury asks you to pay a certain amount of personal income tax on your income. Well, the deductible expenses are those that you can withdraw from your total income so that the percentage you pay for self-employment taxes in Spain is lower . In summary, by deducting expenses you save paying a good chunk of taxes that you can reinvest in your company.

Just in case, here’s an example:

This self-employed deduction is one of many that exist. Any freelancer is eligible for these deductions (including those in marketing), so it’s a good idea to remember some of the more common deductible expenses that also affect freelance marketers:

  • The self-employed fee.
  • Wages and salaries (in case you have a formidable team at your command).
  • Other staff expenses (includes training, accident insurance, nice gifts for your workers…).
  • Leases and royalties (rentals or leasing of an office or material for work).
  • Necessary basic supplies (you can deduct the supplies you need to be able to work, both in the office and if you work at home).
  • Repairs and conservation (to keep your equipment up to date).

Guidelines on deductible expenses:

  • Deductible expenses of self-employed
  • Self-employed vehicle expenses
  • Deduct meals and allowances for the self-employed
  • Expenses without invoice of the self-employed

VAT deductible expenses

In the similar way, it is significant to write down the VAT deductible expenses , since there you can also save a bit. Actually, the deductible VAT is the supported VAT (the one you have to save when you sell a product and then you have to go to the Treasury). Now, you can’t always deduct this type of VAT. For this, first of all, you have to registered the business census with model 036 . Now, VAT operations have to meet the following conditions:

 

You Might Also Like

how does insider trading affect the market

are marketing jobs good

are marketing and advertising the same thing

HOW MANY PAGES SHOULD A CV HAVE?

How to use content marketing to get a job from home

businessinsiderblogs December 20, 2022
Share this Article
Facebook Twitter Email Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow US

Find US on Social Medias
Facebook Like
Twitter Follow
Youtube Subscribe
Telegram Follow

Weekly Newsletter

Subscribe to our newsletter to get our newest articles instantly!

[mc4wp_form]
Popular News
How sports betting works
SportsUncategorized

How sports betting works

businessinsiderblogs businessinsiderblogs December 20, 2022
are sports extracurricular activities
Green-Way.Com.UA – Simplicity & Eminence
are finance classes hard
are sports rigged
- Advertisement -
Ad imageAd image
Global Coronavirus Cases

Confirmed

0

Death

0

More Information:Covid-19 Statistics

Categories

  • Business
  • CV
  • E-commerce
  • Finance
  • Marketing
  • Markets Insider
  • Real Estate
  • Sports

About US

We influence 20 million users and is the number one business and technology news network on the planet.

Subscribe US

Subscribe to our newsletter to get our newest articles instantly!

[mc4wp_form]

© All Rights Reserved By Business Insider Blogs

  • Blog
  • About Us
  • Write For Us
  • Privacy Policy

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?