Deducting Media Subscriptions (Spotify, Apple Music, Netflix) as Business Expenses

In Germany, self-employed individuals (Freiberufler or Gewerbetreibende) can deduct media subscriptions like Spotify, Apple Music, or Netflix as business expenses only under specific circumstances:

Conditions for Deduction:

1. Business Relevance:

   • The subscription must be directly relevant and necessary for your business activities. Examples include professional musicians, podcast creators, video editors, content creators, journalists, or educators using the media for research or content production.

2. Usage Documentation:

   • Clearly document and justify the business relevance of the subscription.

   • Maintain records specifying how the subscription is used professionally versus privately.

3. Partial Deduction:

   • If subscriptions are used both privately and professionally, only the proportional amount used for business purposes is deductible. Estimate this ratio reasonably and be prepared to justify it in case of a tax audit.

Recommended Documentation Practices:

• Keep receipts or monthly invoices.

• Briefly note or log professional usage instances (dates, projects, or specific content).

• Clearly indicate the expense in your accounting under "Betriebsausgaben" (business expenses).

Important Considerations:

• Personal entertainment subscriptions without direct business connection are generally not deductible.

• Tax offices (Finanzämter) scrutinize media subscriptions carefully; thus, clarity and documentation are essential.