Are your smartwatch and watch tax-deductible?

Your smartwatch is up to 100% tax-deductible

Time is money, right? So, can you, as a self-employed person, expense the cost of your smartwatch or watch? 🤑

Good news: a smartwatch, just like your trusty smartphone, counts as a tech expense for work. It’s a pretty simple way to boost your deductions, no matter what your job is.

But here’s the catch: whether you can deduct the full or partial cost of your smartwatch, like an Apple Watch or Fitbit, depends on how much you use it for work.

⚠️ Heads up: if your smartwatch costs over €250, the taxman sees it as an investment, meaning you’ll need to depreciate it over time.

Deducting the cost of a watch

A regular or analog watch is trickier to deduct for tax purposes due to its limited functionality.

Of course, things change if you’re in the business of selling watches. 😉

What makes your smartwatch deductible?

You need to prove that the smartwatch provides clear professional value to your business.

For example, you can explain that you use the smartwatch primarily during working hours, that it’s integrated with company systems (such as your work calendar or business-specific apps), and that using it boosts your productivity—perhaps by allowing you to respond to messages faster. 💪

You could also argue that the smartwatch is an extension of your professional smartphone. Or maybe you’re a software developer who needs to test apps.

As long as the professional use of your smartwatch is clear, and the deduction reflects that professional use, the tax authorities will generally accept the expense.

Percentage of professional use

For specific professions, such as IT professionals or self-employed healthcare providers, a smartwatch can play a key role in performing your job effectively.

For instance, as an IT professional, you might use a smartwatch to test and develop apps for wearables. 📲

It’s a good idea to track the percentage of professional use of your smartwatch. Keep invoices that support the professional use, as the exact percentage you can claim depends on how much it’s used for work.

If you use your Apple Watch 75% of the time for business, you can only deduct 75% of the costs. This applies to both the purchase price and any subscription fees.

Keep in mind, the tax authorities’ evaluation will depend on your personal situation. Partial deduction for your smartwatch is more realistic than claiming full deduction. ✅

If your company provides you with the smartwatch, it may be considered a fringe benefit (VAA/ATN). The flat-rate benefit for a smartwatch is 144 euros per year.

How to correctly categorise your smartwatch in Accountable

You can add the invoice for your smartwatch or Apple Watch under ‘Technology & Communication’ > ‘Technology’.

If your smartwatch is valued at over €250, remember to amortize the cost over three years.