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  • Writer's pictureAthanasios Ventzios

Business expenses: which expenses can I declare?

Λογότυπο Ventzios Accounting

Άνδρας ψάχνει πληροφορίες σε λογιστικά έγγραφα

An issue that plagues all entrepreneurs, old and new, is what costs they can declare as expenses in their business.

The truth is that there is no one list of acceptable costs for every type of business.

There are three basic requirements that an expense must have in order to be included in the profits and losses of a business:

1) There must be a legal document, receipt or invoice. Please note that for expenses over 100 € an invoice is mandatory.

2) The expenditure in question must be entered in the company's accounting books.

3) The expenditure must be related to the business activity and serve the purposes of the business.

For example, a surfboard for an insurance agency is not related to its business, but for a water sports company it clearly serves its purpose.

Some of the costs that are frequently encountered and recognised as reducing the final tax bill in the majority of businesses are the following:

- Entrepreneur's Insurance Contributions

- Rent

- Electricity, Fixed & Mobile Telephony, Water, Heating

- Purchases of Fixed Assets (laptop, mobile phones, furniture, etc.)

- Payroll

- Stationery

- Employer's contributions

- Courier

- Business travel expenses (transport, accommodation)

- Reception and hospitality expenses (business lunch, food purchased for consumption during work)

- Advertising and promotion (brochures, signs, etc.)

Some of the abovementioned expenses, such as payroll or invoices with a net value of more than €500, must be paid through a bank system. Otherwise, they cannot be deducted for income tax purposes.

Another distinction to be made is between expenditure that is deductible for VAT and expenditure that is simply deductible for income tax purposes.

The above-mentioned costs are all entered in the accounting books of a company and are included in the final result (profit or loss) and, accordingly, in the tax that will be incurred. However, not all of them are deductible for VAT purposes, such as travel expenses or hospitality expenses.

It is difficult for the entrepreneur to know the whole complex tax regime of our country, especially with the speed at which it changes.

For this reason, it is important to provide the entrepreneur with basic training, but also to have constant communication with the accounting department, regarding the expenses he can justify in his business, as well as the steps he has to perform to ensure the correctness of the procedure.



How can you find out all the information about a company's expenses?

Our accounting firm is always at your disposal to answer any questions you may have in relation to the deductible costs of a business. We provide you with guidance based on the requirements and needs of your own business and according to which costs can or cannot be justified.

We hold one-on-one meetings, via telephone, zoom calls or email, in order to answer all your questions and provide customized solutions for your needs.

See here all the necessary information for starting as a freelancer.

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