Deducting Website Costs from Your Taxes – What morelinq Clients Should Know
⚠️ Note: This article is for general informational purposes only and does not constitute tax or legal advice. Please consult a licensed tax advisor or your local tax authority for guidance tailored to your individual situation.
A professional website is an investment in your business – and like most business investments, the question arises: can you deduct it from your taxes? The short answer: in many cases, yes. In this article, we'll walk you through how morelinq's pricing structure works and which costs can generally be claimed as business expenses.
Why Website Costs May Be Tax-Deductible
Costs that are business-related – meaning they are directly connected to your self-employed or commercial activity – can generally be claimed as business expenses for tax purposes. A website serves your public presence, customer acquisition, and sales – making it a clearly business-related expense in most cases.
How Is morelinq's Pricing Structured?
At morelinq, there are two clearly separated cost types, which may be treated differently for tax purposes:
1. One-Time Development Costs
The one-time project fee – for example €1,999 net for the Business package – covers the complete custom development of your website. Depending on the amount and how it is classified, this can either be:
- Deducted immediately as a business expense, or
- Capitalised as an intangible asset and depreciated over several years (typically 3 years)
Which option applies to you depends on your legal structure and individual situation – this is where a tax advisor can help.
2. Monthly Costs (Hosting, Support & Operations)
The recurring monthly fee – for example €150 net/month – covers hosting, uptime guarantee, support, and the ongoing operation of your website. These recurring costs are generally immediately and fully deductible as business expenses, similar to rent or software subscriptions.
3. Add-ons & Extensions
During your contract period, additional pages, features, or extensions can be booked at any time – billed separately. These individual payments can generally also be claimed as business expenses.
4. Domain
If you use your own domain, the registration and renewal costs are typically deductible as well.
5. Professional Email Address
If you book a professional email address (e.g. [email protected]) through morelinq, those costs also count as business expenses.
Immediate Deduction or Depreciation?
This is the key question, especially for the one-time project fee:
- Monthly costs (hosting, support, domain, email) → generally deductible immediately as business expenses
- One-time project fee → depending on the amount and classification, either immediately deductible or depreciated as an intangible asset over 3 years
- Subsequently booked extensions → depending on scope, either an immediate business expense or a separate investment
The exact classification depends on your individual case – a tax advisor can provide clarity here.
Input Tax Deduction for VAT-Registered Businesses
If you are registered for VAT, you can reclaim the 19% VAT shown on our invoices from the tax authority. This means: you initially pay the gross amount, but get the tax back through your VAT return.
Example based on the Business package:
- One-time net: €1,999 → VAT: €379.81
- Monthly net: €150 → VAT: €28.50/month
💡 Tip: All morelinq invoices include all legally required details – you can use them directly for your bookkeeping and VAT reclaim.
What You Should Keep in Mind
- Keep your receipts: All invoices should be retained for at least 10 years.
- Private use: If your website is also used privately, only the business portion can be deducted – for a purely commercial website, this is generally not an issue.
- Small business rule: If you operate under a small business exemption (e.g. § 19 UStG in Germany), the VAT reclaim does not apply – but the net costs remain deductible as business expenses.
Further Reading
Here are some official and reliable sources to help you learn more:
- 🏛️ ELSTER – Official German Tax Portal – File your tax return online
- 📘 German Federal Ministry of Finance – Official information on tax law
- 🔍 Find a Tax Advisor – German Tax Advisors' Association – Find a licensed tax advisor near you
- 💼 IHK – Self-Employment & Taxes – Resources for founders and entrepreneurs
- 📊 Lexware – Guide to Business Expenses – Practical overview of deductible expenses
- 🧾 Gründerplattform – Taxes for the Self-Employed – Beginner-friendly explanations
Conclusion
A website through morelinq isn't just another running cost – it's a business investment you can benefit from at tax time. The clear separation between a one-time project fee and monthly costs makes it straightforward to categorise each item correctly in your accounting.
Our advice: Talk to your tax advisor about the exact classification – and simply hand them your morelinq invoice. They'll handle the rest. 😉
Disclaimer: This article has been compiled to the best of our knowledge and is intended as a general guide only. It does not replace individual tax or legal advice. For binding information, please consult a licensed tax advisor or your local tax authority.