When using Factofly, as a general rule, you can claim deductions for all expenses related to the work you invoice for.
When using Factofly, you can only deduct expenses related to the work you invoice.
To ensure that you can deduct an expense, the deduction must be directly tied to a task invoiced through Factofly. This means that you must be able to re-invoice the expense to your client. As a rule of thumb, you should indicate on your invoice that the total price includes materials.
Additionally, this requires that you are employed by us at the time the expense is incurred. Therefore, make sure to create a task before making your purchase.
Example:
If you purchase printing materials in May but perform and invoice work in June, we cannot grant a deduction for this expense, as it was incurred before you were employed by us. You must thus make sure to purchase the materiales in direct connection to you working period.
Documentation
When a supplier invoice (expense) exceeds 3,000 DKK*, the invoice must be issued under Factofly’s CVR number and contact information (including address) for the expense to be deductible. However, your personal name may appear as a reference or "att."
*Please note: it is not possible to deduct electronic equipment exceeding 3,000 DKK.
Important! You are responsible for settling the payment of the expense.
If the invoice is issued under a different CVR number or company name, we cannot approve the deduction.
We need documentation of your purchase. An order confirmation is not valid proof of payment. Only receipts or invoices will be accepted as documentation.
Note: If you have your own CVR number in addition to Factofly, all expenses over 500 DKK must list our CVR number and company name.
How are my expenses reimbursed?
We use the expenses associated with your task to calculate the salary we can offer you. For example, if you have a task worth 1,000 DKK and an expense of 100 DKK, we can offer you a salary of 900 DKK, and you will receive your expense back as a reimbursement.
In reasonable proportion to your income
Expenses related to your work must be in reasonable proportion to your income. While there is no precise formula, we evaluate several factors. For example, your salary should remain at market rates after the expense, and expenses should not be disproportionate to the total income. If the materials are re-invoiced to the client for a specific task, we may allow a larger share, but the salary after material costs must still meet market standards.
NB! If materials are re-invoiced to the client, please remember to specify this when you upload the receipt under deductions.
Your deduction will be processed and finally approved (or rejected) in connection with the completion of your work. It is, therefore, your responsibility to ensure the correct documentation is in place to approve the reimbursement.
What can be deducted?
Expenses directly related to your tasks invoiced through Factofly may include:
Software
Transport – read more about mileage deduction here
Equipment (including tools, etc.)
Materials required to complete the task
Expenses must be listed on the invoice to the client to meet the Danish Tax Agency’s documentation requirements.
What cannot be deducted?
Expenses that cannot be directly linked to a task in your trade, including:
Meals (including meals at client meetings, events, etc.)
Gasoline
Clothing
Major electronic expenses exceeding 3,000 DKK (e.g., computer, phone, iPad, camera, drone)
Office rental
Marketing
General expenses that cannot be linked to a specific task/invoice
If you are unsure whether an expense is deductible, feel free to reach out to us—preferably before you plan to incur the expense.