In March 2023, the Animal Welfare Law came into force, introducing the obligation for pet owners to take out civil liability insurance. As a result, many people wonder if it is possible to deduct this and other expenses such as those derived from the veterinarian in their income tax return.
However, while we would love the answer to be a resounding yes, the reality is a little more complicated. They explain it from TaxDown: “pet insurance cannot be deducted on your income tax return. It does not matter if you took out insurance to keep your cat or dog protected and well cared for: You will not get any tax advantage for this. Furthermore, the Personal Income Tax Law also does not contemplate deductions for veterinary bills.”
Who can deduct animal expenses?
Although owning a pet does not give the right to any deduction, the Treasury contemplates an exception: self-employed people whose veterinary expenses are linked to their economic activity may deduct said expenses as long as they meet three requirements:
- The expense must be directly related to economic activity that you do as a freelancer. That is, health care for your animals must be basic so that you can continue earning income.
- You must have a receipt or invoice that confirms the health care received by your animals. The veterinary professional will prepare and issue this invoice, and you will be able to deduct the VAT from the corresponding operation.
- The expense must have been properly recorded in your self-employed accounting. It is important that you keep a detailed record of all expenses related to economic activity to be able to justify it to the tax authorities. Organization is key!
What expenses can be deducted?
From TaxDown explain the situations that allow expenses derived from animal ownership to be deducted:
- Veterinary expenses are intended for the care of work or production animals: Those people who work in livestock farming could deduct their veterinary expenses. Also those who work in the agricultural sector and use animals (such as oxen or horses) could justify and deduct veterinary expenses.
- You are self-employed and the animals you care for are part of your economic activity: For example, if you use guard dogs in your business, you could deduct the expenses associated with their veterinary care.
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