Google Adwords cost and Kleinschaligheidsinvesteringsaftrek (KIA)

[kkpiano]

Dear friends,

 

I have a small online shop, each month I spend 500 euro for Google Adwords, and every month Google Ireland sent me a bill of this amount.

 

Is it possible to count this cost as Kleinschaligheidsinvesteringsaftrek (KIA) so that I can get 28% back from belastingdienst?

 

More information about Kleinschaligheidsinvesteringsaftrek:

http://www.zzpservicedesk.nl/790/wat-kleinschaligheidsinvesteringsaftrek.htm

 

If it is possible, then every month I also got a bill from a shipping company for my sold products shipping cost which is also more than 450 euro. Can is be also count as KIA?

 

Thank you.

 

kkpiano

[4711]

No, that's only for investments in capital goods.

 

(advertisingcosts and freight is something completely different from that)

[Ward van der Put]

These are not long-term investments, but merely operating expenses and operational costs.

The KIA generally only applies to investments in fixed assets.

 

[kkpiano]

ok, thank you very much for your kind reply.

 

So you mean if I buy a software for company use (for example, an online shop system, or ask a developer to update my current online shop system for new functions), then it also can not count for KIA?

 

[4711]

If you can use KIA you won't "get 28% back" from anyone.

 

If you can use it, you will get an additional deduction for the income tax. Do you actually pay any income tax? (you have a small webshop, so I guess you won't make a huge profit from this?)

If not, the KIA is not a very interesting aspect to your situation.

 

Anyway: it is possible – depending on the actual situation – to use KIA also for software.

The best thing is to ask your accountant or similar if you consider a major investment in software.

 

[kkpiano]

thank you very much for your answer.

[Joost Rietveld]

With regards to software and the KIA be advised that not all software is eligible for the KIA. Software eligible for KIA has to be your economic property. You carry the risk of depreciation of the software. Legal ownership is not a requirement.

 

Usually this results in the distinction between tailor made software (KIA) and licenced software (no KIA).

 

Cheers

Joost

 

 

[kkpiano]

very clear, thank you so much for your kind explanation :)