Internet tax relief - how to prove it in the annual tax return?

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In the tax return for 2020, taxpayers have the opportunity to take advantage of many discounts. One of them is internet relief. Check who and on what terms can take advantage of the Internet tax relief and how it should be shown in the annual tax return!

Internet relief

Internet relief is available to taxpayers in tax settlements in two consecutive years, if they did not use this relief in previous years.

A taxpayer who did not use the deduction for 2018 and did not use it earlier has the right to start using the tax relief in any year. If he makes use of the deduction for the first time, he will be entitled to the discount for the given year and for the next year immediately after that year.

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Internet relief in the annual tax return - KIS brochure.pdf Description: manual completion

The tax relief is available to taxpayers who settle accounts within the tax scale or a lump sum on recorded revenues. The maximum amount by which you can reduce your income is PLN 760 per person. In the case of married couples who settle jointly, this amount increases to PLN 1,520, assuming that both of them pay according to the tax scale. The value of the relief is shown in Appendix PIT / O in part B.

In the annual tax return for 2020, according to the draft of the Ministry of Finance, the Internet tax relief is supplemented on the PIT / O appendix, in part B. in item 29 (in the case of settlement as a taxpayer) or item 30 (in the case of settlement as a spouse).

Settlement jointly with the spouse and internet tax relief

A taxpayer who settles jointly with his spouse, and the internet relief was previously settled only by the spouse, also has the option of deducting his part of the relief in the tax return. It is irrelevant whether the invoices for the Internet will still contain the spouse's or his / her details. The prerequisite for the settlement of the tax relief in such a situation is that the spouses have a property community in the period for which internet expenses are to be deducted. As mentioned earlier, the amount that each spouse can deduct is PLN 760 per person. In order to increase it to PLN 1,520, each spouse must earn income that allows to deduct the full Internet tax relief.

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Example 1.

Mr. and Mrs. M. got married in February 2017, they have had a property community since April 2020. In January 2020, a contract for the supply of internet was signed, which M. would like to settle in the tax return for 2020. It is also worth mentioning that Ms M. used her deduction limit earlier. Is it possible to take advantage of the internet discount?

In this case, the internet discount will be available for the period from April 2020.

Internet discount and confirmation of the expense

It should be remembered that all expenses related to the use of the Internet are deducted under the Internet discount. This means that the right to the relief is not only the user of the network in the place of his commotion, but also the taxpayer who has internet in a mobile phone, uses wireless networks, in an internet cafe or has a portable modem connected to a laptop. In the case of using the Internet in internet cafes, you should request a VAT invoice from the seller with a manual or computer entry "Paid in cash" - the receipt from the cafe itself does not entitle you to a discount.

In order to take advantage of the internet tax relief, the taxpayer is required to document it properly. It is not necessary to have an invoice, all you need is a document containing the details of the buyer and seller, the type of service purchased and the amount to be paid. Only amounts actually paid in 2020 for which the taxpayer has proof of payment are deductible.

Running your own business and Internet relief

Taxpayers running a business can also take advantage of the internet tax relief. For this, there are a few things to keep in mind:

  • Internet expenses were not previously included in company costs,

  • the entrepreneur settles on general principles according to the scale or lump sum on recorded revenues,

  • the relief was settled in the tax return for 2018 or was not settled at all before.

Rent and internet relief

Taxpayers who earn income from rental can also take advantage of the Internet tax relief.

Deductions for internet can be made only if they use the internet for their own purposes. If they have bought the internet for tenants and do not use it themselves, they are not entitled to the discount.