VAT paid by passive permanent establishment is deductible

A” passive ‘ permanent establishment , which does not generate active operations
relevant for VAT purposes in the territory of the State, being exclusively aimed at the
acquisition of goods and services in favor of the non-resident parent company, can
exercise the right to deduct the VAT paid on these purchases and, consequently, request
a refund of the tax. In order to exercise this right, it will be necessary to assess the
relevance and affiliation with the activity carried out by the non-resident subject.

Source: eutekne.info

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