- The indirect estimation method can determine both accrued and deductible VAT amounts.
- Deductible VAT requires proof that the amounts were actually borne by the taxpayer.
- The deduction is conditioned on the VAT being effectively supported and normally passed on.
- The EU Court of Justice doctrine allows denial of VAT deduction if the taxpayer knew or should have known about participating in tax fraud.
- The tax administration must prove the taxpayer’s knowledge of potential fraud.
- VAT deduction can be denied if the invoice is from a non-existent operator or if the taxpayer lacks proper documentation.
- The Union law requires adequate documentation for VAT deduction.
Source: serviciostelematicosext.hacienda.gob.es
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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