- Taxpayers can deduct VAT paid on taxable transactions if documented properly.
- Legal regulations and administrative practices impose limits and conditions on VAT deductions.
- Unawareness of these limits or failure to meet conditions can lead to incorrect declarations and tax losses.
- Non-deductible VAT is primarily outlined in Article 30 of the VAT Law but is not limited to it.
- VAT Law Article 29 outlines conditions for VAT deductions on invoices, imports, and certain inventory.
- Excess deductible VAT can be carried over to the next period.
- Deduction rights must be used within the following calendar year.
- VAT on bad debts can be deducted when the debt is written off, subject to certain conditions.
Source: alomaliye.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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