Purchasing a Smartwatch for Business – VAT Refund and qualification as deductible Expense?

Introduction: Comfort and efficiency at work are key aspects of any business activity. Nowadays, technology such as smartwatches not only serves as gadgets but also as tools supporting time management and health monitoring for employees. But can the purchase of a smartwatch be considered a business expense and can VAT be deducted? Here’s what you need to know.

Possibility of Deducting VAT: According to tax regulations, VAT from purchased goods and services used in business activities is deductible. If the smartwatch is used for business purposes such as managing work time, team communication, or health monitoring related to occupational safety and health (OSH), it is possible to deduct VAT.

Including the Purchase as a Business Expense: The purchase of a smartwatch can be included as a business expense if it is used for purposes related to the operation of the business. However, it is essential to document its business use to avoid problems with the tax office.

Tax Interpretations: Past tax interpretations have confirmed that the purchase of devices used to monitor work and the health of employees can be included as a business expense, provided there is a direct link to business activities.

Special Cases – Health and Safety at Work: If the smartwatch is used to monitor the health parameters of employees, which contributes to improving safety and efficiency at work, such expenses can be treated as a business expense, especially in industries requiring continuous health monitoring.

Summary: The decision to purchase a smartwatch and the possibility of accounting for it as a business expense and deducting VAT depends on how it is used within the business operations. Before making a decision, it is advisable to consult with a tax advisor who can assist in correctly classifying the expense.

Contact Our Office: If you need help with tax optimization when purchasing a smartwatch for your company, do not hesitate to contact us. We offer support in obtaining the best possible tax benefits for your business.