- The Supreme Administrative Court’s judgment of 2 February 2023, ref. no. I FSK 1474/20, refused to allow a taxpayer to deduct VAT from expenses for the use of an electric bus by its social partner (Caritas) as part of activities related to corporate social responsibility (CSR).
- The court held that the expenses incurred for CSR projects are not automatically considered a form of advertising and may not entitle the company to deduct VAT.
- The court emphasized that the potential benefit for the company would be only incidental and would not consist in increasing sales or acquiring new customers.
- This ruling serves as a warning to taxpayers that promoting their activities as socially responsible entities does not automatically mean the right to deduct VAT.
Source MDDP
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