VAT paid on costs made for goods and services that are used directly in the production of the outputs of the economic activity are, logically, deductible for taxpayers.
It is equally logical to assume that the taxpayers incur other expenses, not directly related to their outputs, but necessary or, at least, convenient, for their activity. In the absence of a direct relationship with the company’s outputs, doubts could be raised about the deductibility of VAT paid by them.
Read more: Francisco Javier Sánchez Gallardo
Latest Posts in "European Union"
- Blog Luc Dhont: How Can Multinationals Comply with VAT on Transfer Pricing Adjustments Post-ECJ Arcomet?
- ECJ Opinion Sheds Light on VAT for Ancillary Services in German Accommodation Sector
- Briefing document & Podcast – C-409/04 (Teleos): Physical Movement & Supplier Due Diligence Key for Intra-EU VAT Exemption
- EU boosts tax cooperation with Andorra, Liechtenstein, Monaco, and San Marino
- Briefing document & Podcast: ECJ C-271/06 (Netto Supermarkt) – VAT exemption granted if fraud undetectable with due commercial care
