ELECTRICITY AND WATER COSTS OF A RENTED OFFICE, BAR....
In order to declare these expenses and deduct VAT, the invoice must be in your name:
IF THE INVOICE IS IN THE NAME OF THE OWNER:
1º You can deduct the costs of electricity and water, even if they are in the name of the owner, because there is a binding rental contract.
But the payment of the invoice must be domiciled on the account of the self-employed tenant, in order to have the proof of payment by bank account.
In case of inspection, you should have the rental contract + a copy of the invoices declared + the proof of the debit in your account.
2º Additional costs to the rent bill = If you have to pay the Suma, community contribution, this way of working also applies.
The owner will include in the rental invoice the total amount of the water or electricity bill (before IVA/VAT) and this will apply to the total amount + VAT 21% and - retencion/ withholding of 19%.
The rent is 800 (without VAT 21% and without the application of the retention 19%)
The water bill is € 25 (before taxes)
The electricity is €100 (before tax)
The owner must draw up an invoice for the rent + costs = €925 and VAT and withholding are applied to this.
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