Nondeductible VAT is a deductible expense for corporate income tax purposes

The DGT has reiterated that input VAT incurred on purchases of goods and services that is not deductible under the VAT legislation is a deductible expense for corporate income tax purposes. The DGT recalled that the Corporate Income Tax Law does not contain any special rule on this issue and therefore the accounting rule must be applied. Since the Spanish National Chart of Accounts states that nondeductible VAT forms part of the cost price of goods and services, it must be deductible to determine the
corporate income tax base.

Source: taxand.com

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