Deduction of VAT in University Research: Ruling on Basic Research Activity and Tax Exemption

• The deduction of VAT in the University for basic research activities is allowed.
• The application of article 104 of the VAT Law on differentiated sectors.
• The right to deduct VAT paid on acquisitions of goods and services related to basic research activities.
• The projects of basic research may not involve immediate or direct consideration, but they are necessary for taxable operations.
• The activities of basic research in the University are subject to VAT and not exempt.

Source: audiconsultores-etlglobal.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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