Depreciation, low-value assets and purchases

In short: Things you use for a long time (computer, camera, tools) are not booked as a one-time expense but depreciated over their useful life. Low-value assets up to 800 euros net may be deducted immediately.

In more detail: Depreciation spreads the acquisition costs over the years of use. For typical digital assets such as computers and software, the administrative rule provides a useful life of one year, so they can be fully written off in the year of purchase. The pool rule allows even depreciation over five years for assets up to 5,000 euros.

In detail

• Low-value assets: acquisition costs up to 800 euros net: immediate business expense.
• Pool: 250.01 to 5,000 euros net, evenly over five years (alternatively normal depreciation).
• Asset register: for fixed assets keep a list with date of purchase, price, useful life.
• Private use: if the device is also used privately, only the business share counts.
• Used devices: depreciation according to remaining useful life.
• Receipt: keep the purchase receipt with date and description of the device.

See also: Business income and business expenses, Cash-basis profit statement (EÜR)