Deduct a Smartphone in Germany 2026: The Self-Employed Guide

A solid business smartphone easily costs €1,000 or more today; a new iPhone Pro lands around €1,500. The obvious question: can I write the phone off entirely in the year of purchase, just like my laptop? The answer is: usually yes, but for a different reason, and for expensive devices, unfortunately not.

The key difference: the well-known BMF rule with a useful life of one year applies only to computer hardware: desktops, notebooks, tablets and peripherals. Smartphones are not on that list. For them, the standard depreciation table applies, with a useful life of five years, once they exceed the low-value-asset threshold.

Here are the rules for booking your phone, accessories and contract correctly in 2026 (as a freelancer, sole trader or GmbH managing director) into your EÜR or annual accounts, including input VAT recovery and private use.

In short: Up to €800 net (€952 gross) the phone is a low-value asset (GWG), deductible in full in the year of purchase. Above that, you depreciate it straight-line over five years, pro-rata from the month of purchase. You always reclaim the input VAT (19%) immediately, independent of depreciation. Only the business share counts (for the self-employed usually 60–80%). A privately bought phone can be brought into the business later via a contribution at fair value.

Overview: what you deduct and how

Phone, accessories and contract follow different rules. This table shows at a glance what is immediately deductible and what runs over the years:

Why a phone works differently from a laptop

The BMF letter of 22 February 2022 cut the useful life for computer hardware and software to one year. The letter lists the eligible devices exhaustively: desktop computers, notebooks, tablets, mobile workstations, docking stations, power supplies and peripherals. Smartphones do not appear in it.

The consequence: an expensive phone does not fall under the one-year rule that lets your laptop be fully written off in the year of purchase. Instead, the regular useful life from the depreciation table applies, and for mobile phones that is five years. That is the single most important takeaway of this article.

Rule 1: Up to €800 net, immediate as GWG

The good news first: most work phones stay below the low-value threshold. If your smartphone costs at most €800 net (§6 (2) EStG), it is a low-value asset (GWG) and fully deductible in the year of purchase. At 19% VAT that equals €952 gross.

So an Android device or an older iPhone model for €700 net lands entirely in the purchase year of your EÜR, with no spreading over five years. For GWG above €250.01 net you must keep a running register (purchase date, manufacturer, serial number, price). Details are in our guide to the GWG threshold and immediate write-off.

Rule 2: Above €800 net, five-year depreciation

If the phone costs more than €800 net, you depreciate it straight-line over five years, month by month from the month of acquisition (§7 (1) EStG). A device bought in May is therefore depreciated in 2026 for only eight months (May–December).

Worked example: iPhone at €1,500 gross = €1,260.50 net (at 19% VAT), bought in May 2026, business share 70%. Here is how the depreciation spreads across the years:

Because depreciation starts in the month of purchase, a device bought in May stretches over six calendar years. Above €800 net does not mean a lost deduction, just a stretched one.

Tip: If you can credibly show your phone wears out faster in business use, you may apply a shorter useful life; in practice three years is often accepted. That raises the annual AfA but requires a traceable justification.

Rule 3: Input VAT, claim back the 19%

If you are entitled to deduct input VAT (standard taxation, not the small-business scheme), you recover the VAT shown on the invoice via your advance VAT return, immediately at the time of purchase, regardless of the fact that depreciation runs over five years. For a phone at €1,500 gross that is around €240 of input VAT in the period of purchase.

This requires the mandatory invoice details under §14 UStG. Small-business owners deduct the gross amount as a business expense but claim no input VAT. Whether giving up the small-business scheme pays off for larger purchases depends on the case.

Rule 4: Split the business share cleanly

Almost everyone uses a smartphone privately too. Only the business share counts for tax:

• Under 10% business: no deduction; the device stays private.
• 10–90% business: proportional deduction. For the self-employed, 60–80% is standard and usually uncontested (depreciation and input VAT proportional).
• Over 90% business: full deduction, cleanest with a phone used purely for business.

A short note in your bookkeeping is usually enough as justification. If the tax office has doubts, a three-month phone log helps you document the business-use share. Anyone running a second, purely business phone deducts 100% and need not justify a percentage in an audit. Important: do not confuse the device purchase with the ongoing contract costs: those are handled separately; see our guide to deducting phone costs.

Rule 5: Book accessories separately

Whatever comes with the phone is usually immediately deductible:

• Case, screen protector, charging cable, power bank, car mount: under €800 net → GWG, immediate 100%.
• AirPods and wireless headphones: a separate asset; details in our post on deducting headphones.
• Apps & subscriptions (e.g. Microsoft 365, bookkeeping apps): ongoing business expenses, fully deductible in the year paid.
• Repairs & screen replacement: immediately deductible maintenance expense.

Lost the receipt? A self-receipt saves the business-expense deduction, but not the input VAT, for which the original invoice remains mandatory.

Bought the phone privately? Contribute it later

Did you first buy your smartphone privately and only later use it mainly for business? Then you bring it into the business as a contribution (Einlage). The contribution is valued at the fair value (Teilwert), the realistic current value of the device at the moment of contribution, no longer the original purchase price.

If that fair value is under €800 net, you can deduct it in full in the year of contribution. If it is higher, you depreciate the residual value over the remaining useful life. Example: a phone bought privately for €1,500 is contributed after one year with a fair value of around €900; you spread this amount over the remaining years. So switching from private to business loses no deduction.

Norman automatically recognises on a phone purchase whether GWG or 5-year depreciation applies, books the receipt to the right account and claims the input VAT in the advance return. For GmbHs it flows straight into the asset register; see Taxes for GmbH and Taxes for the self-employed.

The starter book for your self-employment

Free e-book: registration, accounting, your first invoice, and taxes, plus a tax calendar, deductions cheat sheet, and invoice template.

Email *

Company website

I want to receive the starter book and agree that Norman may send me related emails with tips and product info. Details in the privacy policy. Unsubscribe anytime. *

Get the free book

Frequently asked questions

Can I deduct my phone entirely in the year of purchase?

Only if it costs at most €800 net (€952 gross); then it is a GWG and fully deductible immediately. More expensive devices are depreciated over five years. The one-year rule for computers explicitly does not apply to smartphones.

Over how many years is a smartphone depreciated?

According to the BMF depreciation table, the standard useful life of a mobile phone is five years. Depreciation runs straight-line and month-precise from the month of purchase. A shorter useful life (often three years) is possible if you can credibly show faster wear.

How high can the business share be?

With at least 10% business use, a proportional deduction is allowed. For the self-employed, 60–80% is usually uncontested. If you want to claim 100%, best use a purely business phone or document the share with a three-month phone log.

Do I get the VAT on the phone back?

Yes, if you are entitled to deduct input VAT (standard taxation). You reclaim the 19% input VAT immediately at the time of purchase via your advance VAT return, regardless of the fact that depreciation runs over five years. Small-business owners, by contrast, claim no input VAT.

Can I still deduct a privately bought phone?

Yes, via a contribution at fair value. You value the device at its current fair value and depreciate it over the remaining useful life. If the fair value is under €800 net, an immediate deduction in the year of contribution is possible.

Conclusion

Deducting a smartphone in 2026 follows different rules from a laptop: the one-year computer rule does not apply to phones. Up to €800 net you deduct the device immediately as a GWG; above that you depreciate it straight-line over five years, pro-rata from the month of purchase. Always claim input VAT immediately, document your business share (usually 60–80%) cleanly, and book accessories separately. A privately bought phone you bring in later via a contribution at fair value. Do this with discipline and you extract the maximum tax benefit from every work phone.