Subsistence Allowance for Self-Employed Workers in Lanzarote – All You Need to Know.

Learn how self-employed workers in Lanzarote can deduct meal expenses, including conditions, documentation, and daily limits. Stay compliant and save money.

As a self-employed worker in Lanzarote, you are allowed a subsistence allowance which can be deducted, but there are specific conditions you must meet. Here’s a simple guide to help you do it correctly:

Conditions for Your Subsistence Allowance and Deducting Meal Expenses:

1. Directly Related to Your Work:

   – The meal expenses must be directly related to your professional activity. This means the meals should be necessary for your work, like meetings with clients or business travel.

2. During Working Hours:

   – The expenses should be incurred during regular working hours and on a working day. While expenses on holidays or weekends might be deductible, they are more closely examined by tax authorities to prevent fraud.

3. Proper Documentation:

   – You need an invoice to justify the expense. The invoice should include the supplier’s name and VAT number, a description of the goods or services, the date, the total amount, and a VAT breakdown.

4. Electronic Payment:

   – The expenses must be paid electronically, such as by credit card, debit card, or bank transfer. Cash payments are not deductible.

5. Deduction Limits:

   – There is a daily limit for these deductions:

     – In Spain: Up to €26.67 per day.

     – Abroad: Up to €48.08 per day.

   – If you stay overnight for work:

     – In Spain: Up to €53.34 per day.

     – Abroad: Up to €91.35 per day.

Recommendations:

1. Stay Organized:

   – Keep a detailed record of all your invoices and payment receipts. Use digital tools or accounting software to make this easier.

2. Get Professional Advice:

   – Consider hiring a tax advisor to help manage your deductions and ensure you comply with all tax regulations.

Remember, tax rules can change, so it’s important to stay updated on any changes that might affect meal expense deductions for the self-employed. If you have any questions or need further assistance, the team at Rosenov & Quintero Accountants is here to help – contact us today

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