When Tax Authorities Wrongly Reject VAT Deductions: Legal and Practical Implications

• Increasing instances of tax authorities rejecting VAT deductions based on incorrect criteria
• Rejections often cite the productivity of expenses, contrary to tax law and court rulings
• Supreme Court decision 444/2017 clarifies that VAT deductions should not consider expense productivity
• Only requirement is that expenses relate to taxable activities and have proper documentation
• Ignoring court decisions is a punishable offense
• Recent decisions by the Dispute Resolution Directorate support this interpretation
• Some tax inspectors apply subjective criteria, causing legal uncertainty and unnecessary appeals
• Such practices undermine trust in the tax system and hinder investment
• Clear and consistent application of VAT rules is necessary
• VAT should be seen as a neutral tax, and its refund is a right, not a favor

Source: taxheaven.gr

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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