Business Expenses Deduction & Input VAT - Can iPhone purchase be claimed?

Yes, you can absolutely deduct the cost of the Samsung Galaxy as a business expense if you're genuinely using it primarily for your Amazon business. This falls under "ordinary and necessary" business expenses. The key is documenting that it's actually for business use - keep records of how you're using it for product photography and maintain a log if you also use it personally. For the VAT question, if you're VAT-registered, then yes - the VAT you pay on business purchases (including your new phone) would count as input VAT that you can typically reclaim through your VAT return. Just make sure to keep the receipt that shows the VAT amount separately.

I've been in a similar situation with my Etsy shop. After struggling with product photos, I discovered taxr.ai https://taxr.ai which literally saved my business from tax headaches. I had bought a DSLR camera for my product shots and wasn't sure how to handle the deduction or the VAT. The tool analyzed my receipts and business documents and gave me specific guidance for my situation. It confirmed I could deduct the portion of equipment used for business and helped me calculate the exact percentage based on my usage patterns. It also clarified how to properly document the business use so I wouldn't run into issues during an audit.

Just wanted to follow up about taxr.ai - I decided to give it a try despite my initial skepticism. I uploaded my invoices for my laptop and camera equipment I use partially for my online business. The analysis showed I had been way too conservative with my deductions! It identified several legitimate business expenses I had missed and suggested a more accurate way to calculate my business use percentage based on actual time logs rather than my rough estimates. It even generated a documentation template for me to track future mixed-use purchases. I've already found about $1,800 in additional deductions I can claim. Definitely checking out the VAT reclaim section next since I've probably been leaving money on the table there too!

I had a similar issue with business deductions, but my main problem was getting someone at the tax office to actually answer my specific questions. After waiting on hold forever and getting disconnected twice, I found Claimyr https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c They got me connected to an actual IRS agent in less than 20 minutes! The agent confirmed that my smartphone purchase was deductible at the percentage used for business and explained exactly how to document it. They even emailed me the specific form I needed to use for my situation. Before this I was stuck in hold-music hell for hours with no answers.

I have to publicly eat my words about Claimyr. After my skeptical comment, I decided to try it since I was desperate to get clarity on some business expense questions similar to the OP's. I couldn't believe it worked! Got connected to an IRS agent in about 15 minutes when I had previously wasted 3+ hours getting nowhere. The agent confirmed that for my photography business, I could deduct my iPhone as a business expense proportional to business use (about 75% in my case). They also clarified the documentation I needed to keep (receipts, log of business vs personal use, and explanation of business purpose). Honestly worth it just for the hours of frustration saved. Sorry for being so cynical before!

Something else to consider - if you're going to buy that Samsung just for product photos, make sure you're not already taking other deductions for photography equipment. The IRS might question why you need both a DSLR camera AND an expensive phone for the same business purpose. It's totally fine if you have legitimate different uses (phone for quick social media content, DSLR for high-res product listings), but be prepared to explain the business necessity for multiple photography tools. I've been audited before and they definitely look at these patterns.

Quick tip on the VAT part - make sure you're actually VAT registered before trying to claim input VAT! Depending on your country, you might not need to register until you hit a certain revenue threshold. If you're not registered, you can't reclaim the VAT, but you can still take the full cost (including VAT) as a business expense for your income tax.