TEAC Ruling on Free Deliveries to Clients: VAT Deductions Not Allowed for Hospitality Items

• Deliveries of hospitality auxiliary items and terrace furniture made for free to clients are considered customer services
• VAT paid on these items is not deductible according to article 96.1.5º of the VAT Law
• The Tribunal ruled in favor of the tax agency, stating that the VAT on these items is not deductible
• The Tribunal determined that the free deliveries are not accessory to the sale of beer, but independent operations
• Objects delivered for free have intrinsic commercial value and cannot be considered low-value advertising items

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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