- The Spanish Supreme Court allows VAT recovery on costs related to exempt or non-business transactions if they benefit the company’s general activity.
- Input VAT on advisory services for expropriation procedures was deemed deductible due to its link to the company’s overall business.
- Such costs can be treated as general overheads, making the related VAT recoverable.
- The decision aligns with VAT neutrality principles and CJEU case-law.
- The judgment is binding on Tax Authorities, enabling businesses to use this criterion for VAT recovery in audits or litigation.
Source: dlapiper.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.
Latest Posts in "Spain"
- Draft Law to Implement First Phase of EU’s VAT in the Digital Age (ViDA) Directive
- Spanish Tax Agency Dismantles €300 Million VAT Fraud Ring in Hydrocarbon Sector, Arrests Five
- Tax Agency Dismantles Major VAT Fraud Network in Spanish Hydrocarbons Sector, 300 Million Euros Defrauded
- Spanish Tax Agency Dismantles €300 Million Hydrocarbon VAT Fraud Network, Arrests Five
- Spanish Tax Agency Dismantles €300 Million Hydrocarbon VAT Fraud Network, Arrests Five in Major Operation
